lectur2-page39 - Would you be more conservative with your...

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I don’t know how good a wing shooter you are, but those delicious dove breasts wrapped in a piece of bacon laid over some hot charcoal could get real expensive if dove shells were $10.00 a box at Walmart and Kmart instead of $3.00 to $4.00 a box. How would you respond to this high price for shotgun shells? Well, if we assume that the price of dove shells increases to $10.00, I think it would be safe to assume that most folks would purchase fewer shotgun shells. You have probably heard people refer to this phenomenon as the “law of demand”. As price increases, consumption decreases, ceteris paribus. Or, as price decrease, consumption increases, ceteris paribus. Would your behavior while hunting change any?
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Unformatted text preview: Would you be more conservative with your shots? C’mon now, will you take as many shots at birds flying in the ozone layer? Or, will you more carefully select the shots you take with these high dollar shells. This change in behavior results in less consumption. What other actions might you take actions might you take? Will you search out substitutes? Yes, a substitute. You could reload your own shells rather than purchase them from Walmart or Kmart. You may find a mail-order firm that sells only case lots, but at a much reduced price. You and your buddies could split a case. What if you are very wealthy, would $10 per box change your consumption very much if at all 39 much, if at all?...
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.

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