Showing posts with label The third law of demand. Show all posts
Showing posts with label The third law of demand. Show all posts
Thursday, July 6, 2023
Eric Crampton: Comparing (export) apples with apples
Labels: Armen Alchian, Eric Crampton, The third law of demandThe Third Law of Demand
Once you see it, you see it everywhere.
Married couples who’ve left the kids home with a sitter go out to nicer restaurants than childless couples who have the same income.
If you’re travelling abroad and looking across the wine aisle, there’s a lot less price difference between top-tier and mid-tier wine than you’d find here at home. You might be more inclined to pay the smaller bit extra.
And the best New Zealand produce is often destined for export markets.
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