2. What Price Means and Does
2.1
Price Signals as Guides for Resource AllocationHigh prices for scarce resources ensure that these resources will be used for only high-valued purposes.
2.2
Supply and demand - flashNarrated lecture on supply and demand curves and price determination under free market.
2.3
Demand elasticity and total revenue - flashA linear downward-sloping demand curve has a range of demand elasticities and an inverted U-shaped total revenue curve under single pricing.
2.4
Happy Hogging!Price hikes in anticipation of shortages can lead to re-allocation of scarce resources to higher-valued uses.
2.5
Is a Fine a Price?A fine which normally connotes shame can be confused with a price which connotes right if a fine is not properly implemented.
2.6
Should parking be free? - flashNarrated lecture comparing total benefits under free vs paid parking when parking spaces are scarce.
2.7
Excess Demand Blues - Scalpers profit from ticket shortageExcess demand generated by low concert ticket price created profitable opportunity for scalpers.
2.8
Rent CeilingRent 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.