Credibly promising to be irresponsible...since 2004!
One of the best Econ-Talks you and Russ ever did. Really opened my eyes.
The text intro should have said some economists say preventing price gouging always makes matters worse. At NPR there are people still thinking PK is an economist.
Where did she get that "cash only" alternative? !! In addition to being hard to enforce, it just means bootleggers with Square phones will be running relays to the ATM and charging a premium for the service.
I am shocked to discover that you think more of you would have made the story better. Really, that is so unlike you.
Why isn't the increase in supply that comes along with a price increase mentioned in these situations. The focus is always on the decrease in demand from a price increase, but rising prices also induce more supplier to enter the market. It's a two sided coin, but I only ever hear about the demand side of the equation.
Absolutely. At a high enough price for gasoline I'd get a hose and sell the gas out of the tank in my car, which just happens to be full right now but I have no problem staying home until the emergency is over. However, as the price at the station is regulated, there is no profit to me selling the 17 gallons out of my SUV.
And generators exist. all those stations with gas but no power would find power at some price. But, as the price is fixed, being open right now is all losses and no benefits at all.
Which is worse, high priced candles, or no candles at all (because they just sold out at an artificially low price)?
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