Economics in the frozen north

Economics students, look at this very carefully:

Six cans of juice, at a store on Baffin Island - photo from Tales from the Arctic

Six cans of juice, at a store on Baffin Island - photo from Tales from the Arctic

How much do you pay for juice at your local market?

“The High Cost of Northern Living” at Arctic Economics points to Tales from the Arctic and “Believe me now?”

How much per ounce?

Kennie (at Tales from the Arctic) features a bunch of unbelievable prices. Getting goods to towns in the far north of North America, in Canada and Alaska, is a major production. Transportation and handling kick prices up a bit.

We’ll find out how alert Sarah Palin is when somebody asks her the price of a gallon of milk . . .

More seriously, economics teachers might find some object lessons in these photos, and a good presentation on supply and demand, and the costs of distribution.

Milk at $8.50 a gallon? Even in Canadian currency, that burns.

I wonder: Do prices like these make economics any easier to teach to high school kids? Does the urgency of high prices make the subject more relevant?

Why are the prices so high up there, do you think?  Why would people pay such prices?  Why doesn’t someone come in to this business to compete with lower prices?

Tip of the frozen scrub brush to Arctic Economics, of course.

From a 2008 post at Millard Fillmore’s Bathtub.  Used by permission.

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