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microbook_3e-page40 - x 1974 – OPEC imposed oil embargo...

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Scalpers x How much would you pay for the best seats in the house? x Limited supply x Tickets priced below market equilibrium x Excess demand at list price x Arbitrage – whoever obtains tickets at list price, can profit by reselling them Stupidity If “pro–” is the opposite of “con–,” what’s the opposite of “progress?” Price ceilings
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Unformatted text preview: x 1974 – OPEC imposed oil embargo on US x Supply shock x Congress imposed a price cieling on the price of gasoline x Result: long lines and shortage of gasoline Ways to beat a cieling 1. Queuing – be first in line 2. Favored customers – bribe the retailer 3. Ration coupons – buy coupons from friends Page 40...
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