Tag: Supply

Why Is Dubai So Rich?

Why Is Dubai So Rich?

Dubai in the United Arab Emirates [EM-er-it] is home to the tallest skyscraper in the world. It stands almost 3 thousand feet in the air, and cost the city more than 1 billion dollars. On the ground signs of Dubai’s wealth are apparent, as the police patrol the streets in Ferraris, and Lamborghinis. So how …

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: Increasing Costs

Entry, Exit, and Supply Curves: Increasing Costs

♪ [music] ♪ – [Alex Tabarrok] Now that we understand a firm’s cos tcurves, and its entry and exit decisions, we’re able to show how supply curves are actually derived from these more fundamental considerations. Let’s take a closer look. The supply curve is built upon firm entry and exit decisions and the effect of …

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. …