Essay About Author Charles Wheelan And System Uses Prices

My Best Day Ever
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My best day ever is when I went out to play basketball with my neighbor. 1.
In Chapter one, Author Charles Wheelan states that, “the market economy is a powerful force for making our lives better.” In the society that we live in today, there is always someone out there trying to innovate a new product or service that they feel will benefit the general public. For example, a consumer product company such as Procter and Gamble have recently started selling an over the counter medication called ZZZQuil, similar to NyQuil which relieves your cough, sneeze and congestion, ZZZQuil was developed to give the public another sleeping pill or syrup. Wheelan also says that, “the market is amoral;” meaning without standards. To summarize this point, each and every kind of seller has to give into the customers demands by any means necessary. If the seller wont give the buyer what they want, the seller misses out on a sale and future sales from that same buyer. The next statement made by Wheelan is that, “Our system uses prices to allocate scarce resources.” That basically means when there is a finite source of a product or service, the market sells the product or service at any price that will guarantee them profit. One example for that could be a group of one hundred people trying to buy 10 autographed baseballs by Derek Jeter or Ichiro Suzuki. “Because we use price to allocate good, most markets are self correcting.” Whoever cant buy a certain good or service, will find an alternative to suffice their needs and wants. A boy couldnt buy a pair of Nike Shox sneakers for the upcoming school season because they were too expensive. The boy bought a pair of Puma shoes instead for a better price and quality. “If we fix prices in a market system, private firms will find some other way to compete.” When prices for a good or product are the same, one supplier or company will work off the other companys flaws. Delta Airlines would sell an airline ticket to Las Vegas via New York City for $1000.00 not including your luggage. Southwest Airlines has a competitive advantage at selling the ticket to Las Vegas for the same price of $1000.00 and the price includes your first one or two bags, Southwest flies your bags free. Lastly, Wheelan makes a point in telling the reader that, “Every market transaction makes all parties better off. Globalization has lead many nations to a new economic environment. A company like Nike pays each factory worker in Vietnam or China a salary around $600 a year to make shoes and apparel. Although to our modern world standards, paying a factory worker $600 per year is immoral, Nike would support their actions by saying that they are paying the workers a much better wage than if they worked in A different factory.