This class lecture talked about the disadvantage of having a "higher power" that controls economic activity and how the price system solves the problem....
- Decentralized >> Centralized economy
- For a flatter supply curve, a small change in price results in a big change in quantity supplied
* Ex: titanium..... if the price of titanium rises a little, a lot more effort will go into digging it up if it's easy to dig up titanium (if not, then the curve is steeper)
- A czar of titanium would need to know a whole lot to account for this change in price and to produce the appropriate response
- The market solves this problem by steering the efforts to dig up the titanium towards the right professions who know how to do it because of substitutes in the market
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