ECN 340 Lecture Notes - Lecture 6: Microorganism, Opportunity Cost, Birth Weight
31 Oct 2016
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Excess weight has been associated with at least 35 diseases (diabetes + heart disease) Overweight problem has led to higher demand for larger cars, thus results in more gasoline and jet fuel due to heavier passengers. The full price of fast food had been decreasing while making the food at home has not. Since fast food has decreased, quantity demand increases. We do not blame obesity on peoples loss of control or businesses greed to make pro ts. They are simply responding to incentives (price is low so people enjoy it more) - we have to eat to survive, its a biological force like sexual drive. Income has risen faster than price, we have more money then 60 years ago. Food prices have risen, but not as much as other prices, thus a relative bargain. Price goes down, people consumer more of whatever good it may be.
