Answers That Count - Hosted By Charles Musgrove

Economics Professor Joe Calhoun from FSU joins us for another episode to discuss the evolving changes in our economy resulting from the COVID impact. Even though the negative impact is significant, there have been positive changes in the economy also. In this episode we take a look at the upside impacts. Market segments, like real estate, home purchases show growth. The Florida market, specifically the NW Florida area have shown significant demand in 2020. It's almost like home owners are moving from large metro areas to sunny Florida and the beauty of the coast to work remote or work remote and do home schooling. We also chat about the monthly NFP report that was issued on September 4th revealing jobs added for the month and unemployment rate. These also show an economy that is improving with jobs added meeting expectations and the unemployment rate remaining below 10% at around 8.4%. The meat of the discussion is on the economic theory that prices bring the choices of buyers and sellers into balance. We break this down to every day examples to understand the importance of price in the market.

Theory of Price By CAROLINE BANTON Updated Feb 19, 2020 What Is the Theory of Price? The theory of price is an economic theory that states that the price for any specific good or service is based on the relationship between its supply and demand. The theory of price posits that the point at which the benefit gained from those who demand the entity meets the seller's marginal costs is the most optimal market price for that good or service. KEY TAKEAWAYS The theory of price is an economic theory that states that the price for any specific good or service is based on the relationship between its supply and demand. The optimal market price, or equilibrium, is the point at which the total number of items available can be reasonably consumed by potential customers. Supply may be affected by the availability of raw materials; demand may fluctuate depending on competitor products, an item's perceived value, or its affordability to the consumer market.