ECO 284 How Markets Work

ECO 284 How Markets Work - How Markets Work How ECO 284 Dr....

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How Markets Work How Markets Work ECO 284 Dr. D. Foster
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Three (Economic?) Questions: 1. What to produce? 2. How to produce? 3. For whom to produce? We must must decide! Scarcity Choices Costs
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Markets are the solution . . . What is the role of price price ? Serves to reward producers for fulfilling our desires. Forces consumers to conserve on the consumption of goods (and services, and resources . . .).
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Adam Smith Adam Smith It is not from the It is not from the benevolence benevolence of the of the butcher, the brewer, or the baker that butcher, the brewer, or the baker that we expect our dinner, but from their we expect our dinner, but from their regard to their regard to their self interest self interest . . We address ourselves, not to their We address ourselves, not to their humanity, but to their self-love, and humanity, but to their self-love, and never talk to them of never talk to them of our necessities our necessities , , but of but of their advantages their advantages .” .”
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ECO 284 How Markets Work - How Markets Work How ECO 284 Dr....

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