Microeconomics: What Price Means
Censoring Pleas for Help (1/23/1999)
Price control after natural disasters may misallocate scarce resources to less urgent needs
Price control after natural disasters may misallocate scarce resources to less urgent needs
Demand elasticity and total revenue - flash (8/5/2006)
A linear downward-sloping demand curve has a range of demand elasticities and an inverted U-shaped total revenue curve under single pricing.
A linear downward-sloping demand curve has a range of demand elasticities and an inverted U-shaped total revenue curve under single pricing.
Demand Elasticity and Total Revenue - youtube (11/2/2011)
A linear downward-sloping demand curve has a range of demand elasticities and an inverted U-shaped total revenue curve under single pricing.
A linear downward-sloping demand curve has a range of demand elasticities and an inverted U-shaped total revenue curve under single pricing.
Excess Demand Blues - Scalpers profit from ticket shortage (2/23/2004)
Excess demand generated by low concert ticket price created profitable opportunity for scalpers.
Excess demand generated by low concert ticket price created profitable opportunity for scalpers.
Gray Market (11/5/1999)
Gray markets appear when cheaper goods in one market are diverted to compete with more expensive but similar goods in another market.
Gray markets appear when cheaper goods in one market are diverted to compete with more expensive but similar goods in another market.
Happy Hogging! (1/16/2006)
Price hikes in anticipation of shortages can lead to re-allocation of scarce resources to higher-valued uses.
Price hikes in anticipation of shortages can lead to re-allocation of scarce resources to higher-valued uses.
Hedging Inflation with Prostitution (1/30/2015)
Prostitution has proven to be an effective hedge against high inflation induced by subsidies and price control in Venezuela.
Prostitution has proven to be an effective hedge against high inflation induced by subsidies and price control in Venezuela.
Is a Fine a Price? (9/1/2005)
A fine which normally connotes shame can be confused with a price which connotes right if a fine is not properly implemented.
A fine which normally connotes shame can be confused with a price which connotes right if a fine is not properly implemented.
Lounging in Luxury - Can You Afford It? (1/29/2014)
The value of luxury goods can be preserved only if access to them is restricted.
The value of luxury goods can be preserved only if access to them is restricted.
Marginal Cost and Average Total Cost - youtube (transcript) (1/29/2012)
Marginal cost and average total cost can be derived from the short-run total cost subject to the law of diminishing returns.
Marginal cost and average total cost can be derived from the short-run total cost subject to the law of diminishing returns.
One-Price Law – Making an Illegal Buck (2/27/2007)
Artificially-imposed price difference between markets can lead to flow of goods from short-supplied areas to well-supplied areas to equalize their effective prices.
Artificially-imposed price difference between markets can lead to flow of goods from short-supplied areas to well-supplied areas to equalize their effective prices.
Price Gouging - Historical vs Opportunity Cost cartoon (10/8/2017)
Pricing at opportunity cost rather than historical cost can solve market shortages. In other words, "price gouging" can be an unsung hero.
Pricing at opportunity cost rather than historical cost can solve market shortages. In other words, "price gouging" can be an unsung hero.
Price Signals as Guides for Resource Allocation (7/7/2006)
High prices for scarce resources ensure that these resources will be used for only high-valued purposes.
High prices for scarce resources ensure that these resources will be used for only high-valued purposes.
Prices and Sanctions? (8/13/1999)
Prices compel decision makers to consider the monetary costs of their acts, whereas sanctions deter people from doing what is wrong.
Prices compel decision makers to consider the monetary costs of their acts, whereas sanctions deter people from doing what is wrong.
Rent Ceiling (8/31/2000)
Rent control in Boston, MA has led to most apartments charging rent right up to the price ceiling. The effective rent is actually higher if under-the-table payments are included.
Rent control in Boston, MA has led to most apartments charging rent right up to the price ceiling. The effective rent is actually higher if under-the-table payments are included.
Should parking be free? - flash (6/23/2006)
Narrated lecture comparing total benefits under free vs paid parking when parking spaces are scarce.
Narrated lecture comparing total benefits under free vs paid parking when parking spaces are scarce.
Should parking be free? - youtube (11/2/2011)
Free parking generates lower total benefit when parking spaces are scarce.
Free parking generates lower total benefit when parking spaces are scarce.
Should parking be free? (transcript) (3/27/2007)
Narrated lecture comparing total benefits under free vs paid parking when parking spaces are scarce.
Narrated lecture comparing total benefits under free vs paid parking when parking spaces are scarce.
Slippery Oil (9/7/2005)
Oil is a fungible world commodity that should be sourced where it is the cheapest and sold to the highest bidder regardless of national boundaries.
Oil is a fungible world commodity that should be sourced where it is the cheapest and sold to the highest bidder regardless of national boundaries.
Sugar Daddy (6/22/2006)
US subsidies to domestic sugar cane and sugar beet growers have resulted in huge collateral damage to domestic industries and overseas producers.
US subsidies to domestic sugar cane and sugar beet growers have resulted in huge collateral damage to domestic industries and overseas producers.
Supply and demand - flash (6/23/2006)
Narrated lecture on supply and demand curves and price determination under free market.
Narrated lecture on supply and demand curves and price determination under free market.
Supply and demand - youtube (11/2/2011)
Market prices and quantities supplied and demanded are determined by the interactions between supply and demand.
Market prices and quantities supplied and demanded are determined by the interactions between supply and demand.
Supply and demand (transcript) (3/27/2007)
Narrated lecture on supply and demand curves and price determination under free market.
Narrated lecture on supply and demand curves and price determination under free market.
Surge Pricing Ride Service (12/13/2014)
Dynamic pricing allows mobile-dispatched ride services such as Uber to digitally match supply and demand at the expense of regular taxi companies.
Dynamic pricing allows mobile-dispatched ride services such as Uber to digitally match supply and demand at the expense of regular taxi companies.
The Case for Sweatshops (1/23/1999)
Sweatshops in low wage countries supplying goods to American companies may offer better paying jobs than other local firms.
Sweatshops in low wage countries supplying goods to American companies may offer better paying jobs than other local firms.
Underground Sins (1/14/2006)
High sales tax on cigarettes inadvertently encouraged underage smoking and reduced tax revenues.
High sales tax on cigarettes inadvertently encouraged underage smoking and reduced tax revenues.
