Sunday, April 22, 2007

Our Standard of Living Continues to Grow

A report from the Census Bureau shows that even more so than in 1992, our material needs are being met. You can read about it here in an article by Cox News Service reporter Bob Dart.

The percentage of Americans who have an air conditioner and other appliances has gone up since 1992. We are generally getting our basic needs met like food, shelter, medicine and safety. Alot more of us have things like microwave ovens and VCRs.


Anonymous said...

Well this is true to a certain extent. VCRs and Microwaves a like have dropped in price tremendously. I understand that those items were costly during the height of the technology. Air Conditioners follow suit as well.

I can relate this to Demand,in the non price determinant category. The entire demand curve has shifted to the left on items such as VCRs and Airconditioners, due to modern technology. With microwaves we are dealing with a change in quantity demanded, so there will be a movement down and to the right on the existing demand curve.

Therefore, as things get cheaper over the years, more consumers are able to purchase.
This is not a lesson for you of course, because you're a doctor. Just a mere observation by me.

Cyril Morong said...

Thanks for stopping by.

Why would technology cause demand for air conditioners to shift to the left? In economics, technology is a shift variable for the supply line, not demand. When technology improves, supply shifts to the right.