Unit 1: Supply & Demand - London Riots and baseball bat sales!

Nearly every story has some application to the teaching and understanding of Economics and the tragedy of the London (and elsewhere) riots is no different. I can think of at least four important economic concepts that this can be used as an example for.

Sales of baseball bats on amazon.co.uk have increased by over 6500% over the past week. I imagine that this is not because baseball has suddenly become more popular in the UK and assume that they are being purchased for protection. Economic concepts include…

- tastes and fashions. An excellent example to use for those other factors that increase demand for a product. Because it was unexpected, a shortage resulted.

- price elasticity of supply. If you didn’t get in early then you will have missed out - the expected wait for shipping is now five weeks. Amazon were unable to increase the availability of the bats quickly.

- demerit goods. Our American friends are probably mystified as to why the demand for baseball bats has increased - surely a handgun would be a much better form of protection?

- externalities. A good discussion could be had as to whether the consumption of baseball bats leads to positive or negative externalities.

Any other ideas?