Category: Tutorial
-
The Great Shift: Where Did All the Jobs Go? A 20-Year Look at Industry Disruption
Remember the concept of a “job for life”? For our parents’ and grandparents’ generations, it was a tangible reality. You started at a company, learned the trade, and retired 40 years later with a pension and a gold watch. Today, that idea feels like a relic from a black-and-white movie. Over the last 20 years,…
-
Will AI Destroy Jobs or Redefine Them? An Economic Perspective
As artificial intelligence (AI) increasingly integrates into every aspect of modern life, one pressing question emerges: Will AI eliminate jobs or simply redefine them? From an economic viewpoint, the answer may be more nuanced than it initially appears. Understanding the Historical Context Throughout history, new technologies have often sparked fears of widespread unemployment. From the…
-
Unlocking the Hidden Value: Understanding Producer and Consumer Surplus
Ever wondered what makes a great deal feel so good? Or how businesses profit while still delivering value to their customers? The answers lie in two fundamental economic concepts: consumer surplus and producer surplus. These ideas help us understand the benefits that both buyers and sellers gain from market transactions, illustrating the efficiency and welfare…
-
Navigating Your Wants and Needs: Understanding Utility Maximization and How Prices & Income Shape Your Choices
Ever wonder why you buy what you buy? Or how a sale on your favorite item, or a sudden raise at work, changes your shopping habits? It all boils down to fundamental economic principles: utility maximization and the interplay of income and substitution effects. As consumers, we’re all trying to get the most “bang for…
-
Price Elasticity
Price elasticity refers to the measure of how much the quantity demanded or supplied of a good changes in response to a change in its price. The formula for the price elasticity of demand is below. price elasticity quantity of the demanded good price of the demanded good If the quantity demanded changes considerably due to…