Below are photos and descriptions taken by actual students who were tasked with finding economics principles in their hometown over holiday breaks. Textbooks tend to give the same boring examples over and over, but even students in fundamentals of microeconomics can apply the lessons they have learned on a truly micro level.
Advertising in Perfect Comp.
(Olympia, WA) Even though all-purpose flours are identical, there are some brands that charge more for their product. When consumers choose a certain brand, even if it is more expensive, it is an example of brand recognition. Pillsbury advertises in a way that distinguishes their product from other brands. The consumers trust the brand and are willing to pay more to buy
(Submitted by: Maddie Johnson)
(Issaquah, WA) Michael Phelps, aside from being an Olympics gold winner, is a great celebrity for Subway to associate themselves with because Subway tries to give out a healthy image. Customers may connect Phelps with Subways menu items and think that Subway is confident in their product to pay a large amount of money for Michael Phelps to appear in their advertisements.
(Submitted by: Kenzie Fleischman)
(Kelso, WA) I went to the store to get my brother and myself some Cokes. A 20 ounce bottle costs $1.69, and I was willing to pay that price for two bottles. But the store I was at had a sale, offering two 20 ounce Coke products for $2.50. Buying two Cokes without the sale would have cost me $3.38. With the sale, I receive a consumer surplus of $0.88.
(Submitted by: David West)
Advertising in Monop. Comp.
(Spokane, WA) Deschutes brewing company changes the type of products they sell during different seasons to help gain more revenue. Here they are selling Jubelale which is only sold during the months of October, November, and December. Also, this product will get sold more during these seasons because people will know that it will only be around for a limited time (and because its delicious).
(submitted by: Britany Heaton)