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But how does this scarcity principle translate into conditions other than droughts and produce surpluses, or the pricing decisions of marketers in the general world economy? Take a local movie theater, where an artificially induced scarcity of other food products allows the movie theater to charge more for popcorn and soda, or a bar or a restaurant to charge more for wine.
In areas with high levels of tourist foot traffic, the principle of scarcity can also be induced, even though theoretically tourists could gravitate to other areas to eat. Because tourists don't know where to find good restaurants that are cheap, they tend to eat at the first place where they can find a table, near tourist attractions. Good restaurants don't locate to these areas, because even if they are able to charge high prices, they won't draw in the sort of local clientele that wishes to sample higher-end cuisine. Thus,...
Because cars are expensive, people tend to hold onto them as long as they possibly can, thus the market for used cars is full of lemons. And even if a person has a good used car, it is difficult to charge a high price for it, because of the general market conditions people tend to assume that something must be wrong with the car. Thus, from the frustrations of the grocery store, the movie theater, the toy store, and the local used car market, Harford explains that it's not your bad luck -- it's just the way the economy works (or doesn't).
Works Cited
Harford, Tim. The Undercover Economist. New York: Oxford University Press, 2005.
Works Cited
Harford, Tim. The Undercover Economist. New York: Oxford University Press, 2005.
Ashley, Assistant Director, Criminal Investigative Division of the FBI relates that in 1991: "...the U.S. Attorney's office in Los Angeles charged 13 defendants in a $1 billion false medical billing scheme that was headed by two Russian emigre brothers. On September 20, 1994, the alleged ringleader was sentenced to 21 years in prison for fraud, conspiracy, racketeering, and money laundering. He was also ordered to forfeit $50 million in
He also says that it is common to exaggerate information in anything from house ads to resumes. Why do Drug Dealers Still Live With Their Moms? This chapter deals with conventional wisdom and when to question it, such as the idea that all drug dealers are wealthy, when if fact, many still live at home. The premise of this chapter is on how to find the right data to prove or
A favorite target for conspiracists today as well as in the past, a group of European intellectuals created the Order of the Illuminati in May 1776, in Bavaria, Germany, under the leadership of Adam Weishaupt (Atkins, 2002). In this regard, Stewart (2002) reports that, "The 'great' conspiracy organized in the last half of the eighteenth century through the efforts of a number of secret societies that were striving for
Nike Inc. Operations Evaluation of Nike Incorporated Marketing Mix Price Marketing Mix Place Market Situation Factories Based on Region and Product Current Situation of Footwear Industry Marketing Mix Product Nike Current Situation Strengths Marketing Mix Promotion Weaknesses Opportunities Threats Critical Evaluations PEST Analysis Growth Opportunities Political Evaluation Economic Evaluation Social Evaluation Technological Evaluation Changes in Operations Workers at Factories Code of Conduct Grade Assessment Operations Evaluation of Nike Incorporated Understanding how globalization affects a company will be analyzed to explore how Nike Incorporated handles the multiple risks and capitalizes on the benefits of such