Welcome to Rye Country Day's Economic Blog. Here you will find perspectives by students taking Economics at Rye Country Day School. It is meant to be a forum where students can openly express their ideas and take positions on relevant economic issues. I urge everyone to participate in presenting their own ideas in an open manner so that we can all learn from each other. Regardless of whether you are currently taking Economics, everyone is invited and encouraged to comment on articles and get involved. Feel free to e-mail me, Alex Osborne at email@example.com , with comments or suggestions.
Tuesday, January 16, 2007
Featured Entry - Pop-Tart Problem
This is a perfect example of the butterfly effect right here. It all starts with one price increase, and everything else soon follows suit. But that first change, what triggers it? In this case, the scarcity of fuel. Oil prices go up and corn, a potential alternative fuel source, also rises in price. But in this situation there doesn't seem to be much of a solution. Oil is scarce, so gas prices will go up if nothing is done. On the other hand, if corn does become reliable as a fuel source, then cereal prices rise as well. I suppose this is where prioritizing comes in; what's more important, fuel or cereal? It's tough to say.