Jennifer Bayot exemplifies many economic concepts in her article "Want Bills by Snail Mail? It Might Cost You Money." This article can be explained using the economics concepts learned in Economics 111.
In an attempt to maximize profit by having consumers do all of their bill paying online, large scale companies are beginning to charge consumers for billing information sent through conventional mail. Under the laws of demand, the income effect of the monthly raise in expense for mail delivered bills is lowering consumer's real income. Knowing consumers wish to maximize their utility, companies predict consumers will shift their billing transactions to the web in order to keep their real income the same.
Changes in technology have jump started this new request. Companies know they can now charge for conventional mail because consumers are able to do this all online. This could potentially save companies a dollar or more on each consumer that converts to the web. Market equilibrium must be met once again for companies as they wait for consumers to realize this new substitute they have presented to them.
The author of this article tries to lead us into believing that we should not have to change the ways we handle our billing transactions. She believes companies are expecting too much of us too soon. I strongly disagree with this; Companies are always trying to maximize profit and buyers must be aware of this and willing to adapt. It is a needless expense for companies to continue sending their mail conventionally when there is a perfectly feasible alternative that is next to nothing. I agree consumers may have trouble adapting to this new method, but ultimately as more and more companies adapt to this method, market equilibrium will be meet at a lower price bringing consumers monthly pay down. Market equilibrium would be affected in view of the fact that competing companies would be forced to lower their price as they are able to make more of their good at a lesser price.