supply and demand | Melotte Financial Advisors

I’m again hearing stories of grocery store shelves emptied of toilet paper. Like many things in life, it’s actually a very simple problem to address but not always easy.

I’ve heard a lot of people exclaim how irrational it is that people are stocking up on toilet paper in response to this particular virus. But, I disagree. It’s actually quite rational.

After all, toilet paper doesn’t expire so it’ll be just as useful in five years as it is today so you don’t have to worry about buying more than you can quickly use since it doesn’t go bad anyway. Therefore, if you’re worried other people are going to raid the shelves it’s perfectly rational to want to get out ahead of it and stock up yourself ASAP.

This then leads to a cycle that feeds upon itself. As more people begin hearing stories of difficulty in obtaining toilet paper they rush to the stores and buy whatever they can get their hands on and the cycle continues.

The problem is with *PRICE.* Continue reading “Toilet Paper “Shortage” Solved”

I’ve experienced weddings from a few different perspectives: as a guest, as the co-star, in a supporting role and as the bartender. Bartending is a great gig for a college-age kid by the way.

Bartenders are notoriously observant…especially once the guests are loosened up and start filling the dance floor because this is the time when things start to slow down for the bartenders giving them a chance to really observe the festivities.

Not long after this point (sometimes it feels far too soon when you’re a guest) the party begins winding down, and the cleanup begins, but you don’t need to be a bartender to make the following observations. In fact, I’m sure you’ve already made these observations:

Continue reading “What Does Free Beer Teach Us About Economics?”