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iPad too pricey? Consider substituting a Kindle Fire
It wasn’t easy, but I figured out a way to talk about Christmas and economics in the same article. A fundamental part of economics is the fact that substitutes can alter our decision to buy something. If the price of what we want is too high or if scarcity causes the item to leave empty shelves at WalMart, we’re forced to choose a substitute. If you’re in this boat, take a look at these substitutes for the most popular Christmas gifts this year. [click to continue…]
You’ve probably heard of the phrase “the 80/20 rule.” The technical term for this common phrase is called the Pareto principle, named after…you guessed it, a man named Pareto. In the early 1900s, Vilfredo Pareto noticed that 80% of Italy was owned by 20% of the population. On a much smaller note, he observed that 20% of the pea pods in his garden produced 80% of the peas. His observations developed into a general thought about the way things are distributed and the Pareto principle was formed. [click to continue…]
