ECON 2010 Lecture Notes - Lecture 6: Price Controls, Dave Matthews Band, Economic Equilibrium
1 Mar 2017
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When you want more rather than less, you are acting in rsi. Economics is largely based on people who act rationally. Who gets to attend a concert: market system, pay a price, central planning, i. e. only democrats, traditional, right of passage for a certain group. If your enjoyment is truly a function of everyone else"s enjoyment, then waiting in line can create a network externality of the experience. Officials have a menu of options of actions to take to affect price: price ceilings. The price of a product may end up being higher than the equilibrium price, as the cost of waiting in line gets added to the actual price of the good. Allocation by seller"s preferences: florida ice example. State law prohibits people from gouging," taking advantage of situations: goods are allocated not based on the market, but rather by who the seller wants to give a good too. Could be discriminated by necessity or simply race, religion, etc.
