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Chocolate santa effect
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The Theorum The Chocolate Santa Effect is a very basic economics theorum taught at the Australian National University in Canberra. The theorum states how the basic supply and demand theories of economics can be rendered untrue by varying external influences. Example When selling chocolate in June, a seller can raise the price and demand will fall. However when selling chocolate in August, price rises can be implemented, and demand may rise. This is because leading up to christmas, it is time to make chocolate santas." In this very basic example the market clearing demand and supply model of chocolate is altered due to the increased demand for Chocolate at christmas time. The same exaple could be used for flowersat valentines day, or pumpkins at halloween. |
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