What is Bakeonomics350?

The core principles of economics are in every decision we make, so it makes me sad when people say they don't understand economics or they hated their undergrad economics course.  

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In this blog, I walk through basic concepts of economics or explain news events using digestible language and relatable examples.  Each blog also centers around something related to baking, and I either share or refer you to a recipe at the end of each one.  

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Why 350?  350 degrees is a common baking temperature, and since you will hopefully learn something on this blog, Bakeonomics350 is your course number.  

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Economics is for everyone, and I believe the concepts on here are useful to everyone.  

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For more about me...

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Recent Posts

Videos

Economic Topics

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• Economics Major "Ina Garten was an Econ Major​"

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Micro Basics

• Opportunity Cost: “Opportunity Cost, Economic Profit, and Opening a Bakery” (Cherry Pie)

• Sunk Costs: “Salt and Sunk Costs” (Brownies)

• Incentives "COVID-19; Crossing State Borders & Homemade Vanilla Extract"

• Marginal Thinking “Thinking on the Margin and Birthday Cake”

• Asymmetric Information “The Market for Lemon Meringue Pie”

• Principal-Agent Problems "Cookie Dough Cheesecake & Asymmetric Info "

• Public Goods “Fireworks Cookies and Public Goods” (Sugar Cookies)

• Prices "The Magic of Chocolate Chips"

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Demand and Supply

• Diminishing Marginal Benefit: “Pink Icing and Diminishing Marginal Benefit” (Amish Cookies)

• Diminishing Marginal Benefit: "Matilda Cake Scene: Economics is Everywhere" (Chocolate Cake)

• Complements and Substitutes “Complements and Substitutes in Baking” (Biscuits)

• Bang for Buck decision-making "'Bang for Buck' and Regular vs. Instant Grits"

• Elasticity of Demand “Wedding Cakes and Elasticity” (White Cake)

• Marginal Cost increases "Red Roses and Chocolate Cookies on Valentine's Day"

• Supply Curves “Supply Curve of Chocolate Chip Cookies”

• Inputs & Foreign Labor "COVID-19: Foreign Labor & Strawberries"

• Decreased Demand and Supply "Covid-19: Maryland Crabs versus Maine Lobster: Two Crustaceans, Two Different Problems." 

• Increased Demand "COVID-19: Lumber, Pools, NYC Suburbs, & Gingerbread Houses: Unexpected Winners during a Pandemic"

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Equilibrium

• Shifts in Supply and Demand “Honey: Shifts in Demand AND Supply"

• Shifts in Demand and Supply "Are Imports Bad? The Case of the Blueberry"

• Price Ceilings “Croissants and Butter” (Chocolate Croissants)

• Shifts in Demand, Shortages, & Elasticity of Supply "Price Spikes and Oat Milk"

• Elasticity of Supply  "COVID-19; Flour, Yeast, and Milk; Elasticity of Supply" 

• Negative Prices "COVID-19: Negative Oil Prices & Girl Scout Cookies"

• Shifts in Supply "COVID-19: Meat prices are high but farmers are hurting (+Texas Kolaches)"

• White versus Brown Eggs and Long-Run Prices (+ Creme Brûlée)

• Externalities "Chocolate and Chilis" (Mexican Brownies)

• Externalities "Gender Reveal (cake) Externalities"

• Externalities and Taxes "Soda Taxes, Check-Out Restrictions, and Potato Chip Cookies"
   

Firms

• Shut Down Decisions “Ice Cream and Shut Down Decisions”

• Short & Long Run Decision Making "S'Mores Pie, Marshmallows, & an Explanation of Short and Long Run Firm Decision-making"

• Cartels “Maple Syrup Cartel”

• Collusion "Collusion in the Milk Market + Tres Leches Cake"

• Price Discrimination “Tortillas and Price Discrimination”

• Monopoly Power "Trademarks, Copyrights, Patents, and Cake & Brownie Mixes (Brownies with Cherries on Top)

• Monopoly Power "Greek Feta, Government Protections, and Cheese Pies"

• Monopolistic Competition “Monopolistic Competition and Peanut Butter Cookies”

• Competition between Firms "The Colorful Fight Between Margarine and Butter"

• Monopoly to Monopolistic Competition "Raisin Bran was Once a Monopoly (Bran Muffins)"

• Advertising "Driving Demand and Saving Soda"

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Trade

• Trade War & Tariffs “Banana Bread and Trade Wars”

• Brexit & Tariffs "The Impact of Brexit on Oranges" (Orange Scones)

• Trade, Tariffs, Export Bans, Etc. "COVID-19: How COVID-19 gave an unexpected boost to Thai Rice Exports (+ Rice Pudding)"

• Blueberry Imports "Are Imports Bad? The Case of the Blueberry​"

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Econometrics

• Randomized Control Trials "Nobel Prize, RCTs, and Cookies in Class" (Chocolate Chip Shortbread Cookies)

• Crossing State Borders "COVID-19; Crossing State Borders & Homemade Vanilla Extract"

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Macro

• Money "Chocolate is Money" (M&M Cookies)

• Coin Shortage "One a Penny, Two a Penny, Where are all the Pennies? (Hot Cross Loaf)

• GDP, Consumption, and Cornbread (+ Chili)

• Blueberry Imports "Are Imports Bad? The Case of the Blueberry​"

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Financial Literacy

• The Importance of Diversification in Desserts & Finance

• Importance of Keeping Track of Spending "Cookie Jar of Money"

• Budgeting for an Event (or Money) can be Freeing!

• Friendship Bread and Compounding Interest

• Little Expenses can Add up "Coffee (Angelfood Cake) Expenses"

• Pie Filling vs. Crust; Inflation vs. Interest

Economics in Action 

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• Changes in Demand & Elasticity of Supply  "COVID-19; Flour, Yeast, and Milk; Elasticity of Supply"  

• Negative Prices "COVID-19: Negative Oil Prices & Girl Scout Cookies"

• Inputs & Foreign Labor "COVID-19: Foreign Labor & Strawberries"

• State Laws "COVID-19; Crossing State Borders & Homemade Vanilla Extract"

• Shifts in Supply "COVID-19: Meat prices are high but farmers are hurting (+Texas Kolaches)"

• Trade, Tariffs, Export Bans, Etc. "COVID-19: How COVID-19 gave an unexpected boost to Thai Rice Exports (+ Rice Pudding)"

• Trade War & Tariffs “Banana Bread and Trade Wars”

• Brexit & Tariffs "The Impact of Brexit on Oranges" (Orange Scones)

• Shifts in Supply and Demand “Honey: Shifts in Demand AND Supply"

• Price Ceilings “Croissants and Butter” (Chocolate Croissants)

• Collusion "Collusion in the Milk Market + Tres Leches Cake​"

• Visas and Trade Wars "Covid-19: Maryland Crabs versus Maine Lobster: Two Crustaceans, Two Different Problems." 

• Increased Demand "COVID-19: Lumber, Pools, NYC Suburbs, & Gingerbread Houses: Unexpected Winners during a Pandemic​"

• Coin Shortage during COVID-19 "One a Penny, Two a Penny, Where are all the Pennies​? (Hot Cross Loaf)

• Blueberry Imports "Are Imports Bad? The Case of the Blueberry​"