Posts Tagged ‘shortages’

  • A Price Ceiling Has Unintended Consequences

    Do You Like Rent Control?

    Nov 30, 12 • 2636 Views • No Comments

    Asked if it makes sense to mandate lower rents for some apartments in large cities, many of us say yes. Lower rents facilitate diversity and they enable middle income municipal workers to live close to home. Affordability is good. Yes? The residents of......  [read more]

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    Just Desserts

    May 27, 12 • 727 Views • No Comments

    Our story begins in 1920 with some ice cream, some chocolate and a stick. A candy maker decided to coat the ice cream with the chocolate, insert the stick and freeze it. Patenting the stick idea, he created the first ice cream bar and called it a Good Humor......  [read more]

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    Venezuela’s Price Controls

    Apr 22, 12 • 959 Views • No Comments

    Reading that a Venezuelan retiree did not mind the food lines, I started thinking about how President Chavez’s price controls have changed incentives. The retiree, who has more time than money, now has the incentive to stand in line. Meanwhile, a......  [read more]

  • Peanut prices respond to demand and supply

    Peanuts or Cotton?

    Oct 12, 11 • 641 Views • No Comments

    Farmers decided to plant fewer peanuts when cotton prices soared. The result? Now peanut prices are skyrocketing. Here is the story. Perhaps it all began with higher cotton prices. Responding, peanut farmers switched some acreage to cotton. Combine that......  [read more]

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    A Water Dilemma

    May 8, 10 • 653 Views • No Comments

    Last week, the Boston area had undrinkable water for several days. Predictably, bottled water sales soared as did bottled water prices in certain stores.  Equally predictably, politicians condemned the increases. Most economists, though, disagreed.......  [read more]