Posts Tagged ‘shortages’

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    Venezuela’s Price Controls

    Apr 22, 12 • 298 Views • Behavioral Economics, Demand, Supply, and Markets, Households, Regulation, Thinking Economically, UncategorizedNo 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

  • Peanut prices respond to demand and supply

    Peanuts or Cotton?

    Oct 12, 11 • 172 Views • Businesses, Demand, Supply, and Markets, Thinking EconomicallyNo 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

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    A Water Dilemma

    May 8, 10 • 197 Views • Demand, Supply, and MarketsNo 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.

  • Who Should Get A Kidney?

    Dec 23, 09 • 179 Views • Behavioral Economics, Demand, Supply, and Markets, Households, Regulation, Thinking EconomicallyNo Comments

    Some say that it is unethical to pay someone for a kidney while others say it is unethical to use a method (a government list) that makes fewer donor organs available. As always, choosing is refusing. The debate continues in a recent NY Times article: