Tag: Demand

Price Ceilings: Lines and Search Costs

Price Ceilings: Lines and Search Costs

♪ [music] ♪ – [Alex] In this video, we’re going to take a look at another effect of price ceilings: wasteful lines and other search costs. Let’s get started. It’s important to understand that price controls do not eliminate competition. Competition for scarce goods is an ever present force under all forms of social organization. …

Entry, Exit, and Supply Curves: Constant Costs

Entry, Exit, and Supply Curves: Constant Costs

♪ [music] ♪ – [Alex] Okay — this talk is going to be a bit more involved. What we’re going to show is how a constant cost industry generates a flat supply curve. Let’s begin. A constant cost industry is one where it’s very easy to expand output without pushing up costs. So for example, …

I-Pencil, Redux | Hillsdale College Econ 101

I-Pencil, Redux | Hillsdale College Econ 101

Leonard Read, in 1950, wrote an article called, “I, Pencil,” which became rather famous. In it, he points out all the coordination that’s required for a pencil to be made, and how markets solve the problems of getting lumber from the Pacific Northwest, and rubber from Malaysia, and all the parts of a pencil assembled. …