[4a] Local Market Price Analysis
Over the next four weeks, each group will track market prices of two goods (or services) consistently on the same day each week. Minimum frequency is once per week, maintaining consistency in your timing. However, more frequent data collection is encouraged – you may expand from weekly Monday recordings to multiple days like Monday, Wednesday, and Saturday, all at the same time of day, for example. We will use this data as the foundation for applying supply and demand theory as well as price elasticity concepts we will cover later in the course. Feel free to rotate responsibility among group members, with each person taking turns to track prices weekly if you’d like.
Ex1) Uber (standard pickup) from UT Main Building to Texas Capitol on different times
- Same service but different prices depending on available demand and supply at the moment.
Date — Price observed
- 8/18 Thursday 8am — $7.21
- 8/18 Thursday 6pm — $8.65
- 8/20 Saturday 8am — $4.25
- 8/20 Saturday 5pm — $13.66
- 8/20 Saturday 8pm — $11.52
- 8/23 Tuesday 6pm — $7.90
- … — …
Ex2) Starbucks Americano Grande at different places
- Same product but different prices depending on location. Prices are higher at locations with higher demand and low competition. → Differences in geographical demand factors may also matter, rather than supply factors. Different demand curves in different markets → prices are also formed differently.
Date — UT Campus — 38th Guadalupe — Target Starbucks
- 8/18 Thursday — $3.65 — $3.45 — $4.20
- 8/19 Friday — $3.65 — $3.45 — $4.20
- 8/22 Monday — $3.65 — $3.45 — $4.40
- 8/25 Thursday — $3.65 — $3.45 — $4.40
- 8/30 Sunday — $3.65 — $3.45 — $4.40
- … — … — … — …
Make sure to clearly identify the goods or services you’re monitoring and document the date and time of each price observation. Attachment per observation is also required (price lists, receipts, screenshots, etc.) If possible, compare the same product across multiple locations (optional).
Ex3) Campus dining options
Campus lunch menus represent similar but differentiated products competing within a same geographic and temporal market space.