Inflation - McGraw-Hill Introduction to Business

While Other Prices Rise, AriZona Iced Tea Remains 99 Cents

April 19, 2022

As companies continue to face climbing costs, many businesses are responding by either raising prices themselves or reducing the size of their product offerings. But there’s at least one company who hasn’t surrendered to the effects of inflation: 23-ounce cans of AriZona iced tea remain 99 cents, the same price as when they hit the market 30 years ago. So is AriZona somehow immune to recent price increases? Not in the least, considering that the cost of aluminum has Continue reading →

Promotions, Pricing, Marketing, Product Distribution, Ethics, Food & Drink, Supply & Demand, Inflation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

[VIDEO] Shrinkflation May Leave Fewer Chips in Your Bag

April 15, 2022

NickelsMcHughMcHugh

As businesses across the globe contend with rising inflation, many companies are cutting costs by reducing the size of consumer goods and hoping buyers don’t notice. This video looks at this growing trend of “shrinkflation” and the risks that companies take when they downsize snacks.

Questions:

Why are many companies responding to rising costs with “shrinkflation?”
What risks do companies take when they alter the packaging or size of consumer goods like snacks?

Supply & Demand, Inflation, Branding, Pricing, Packaging, Marketing, Ethics, Product Distribution, Food & Drink

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Videos

[VIDEO] How the Fed Steers Interest Rates to Guide the Entire Economy

March 17, 2022

NickelsMcHughMcHugh

With inflation rising to its highest levels in 40 years, the Federal Reserve plans to take action by raising interest rates in an effort to get the money supply under control. This video looks at the ways the Fed guides the economy by influencing the federal funds rate, which then affects everything from banking policies to the housing market.

Questions:

Why is the Fed planning to raise the federal funds rate?
How does the federal funds rate eventually affect Continue reading →

Regulation, Federal Reserve, Money Supply, Inflation, Economics

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

[VIDEO] Low Inflation Haunts the Fed: Here’s Why

June 20, 2019

NickelsMcHughMcHugh

In recent months, officials at the Federal Reserve have debated whether or not the institution should do anything to combat rising inflation. This video explains the basics about inflation and what the Fed could potentially do about it.

Questions:

What are some of the potential causes of inflation?
What is the Federal Reserve’s role in managing inflation?

Economics, Federal Reserve, Money Supply, Inflation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 20: Money and Financial Institutions