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Questions tagged [pricing]

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8 votes
4 answers

Why do some businesses choose scarcity as their business model instead of raising the price to meet the demand?

Here are some examples of what I'm talking about: Mass events such as Burning Man, the Olympics, and the World Cup sell out tickets very quickly which forces fans to resort to scalping or using bots ...
JonathanReez's user avatar
7 votes
4 answers

If rent control "doesn't work" and supply induces demand, how can cities improve affordability?

Suppose we aim that moderately poor people (let's say 1.5× minimum wage) can afford the rent for an apartment meeting minimum quality standards and located within city limits. This may be a political ...
gerrit's user avatar
  • 1,754
6 votes
4 answers

What does economics say about "price gouging" during an emergency?

Many states have laws against "price gouging" during an emergency. Are these laws counterproductive? Take the current situation with toilet paper and water. When someone sees rolls of toilet paper ...
FreeMarketUnicorn's user avatar
1 vote
0 answers

Optimal price when elasticity of demand is positive? [closed]

I’m performing some exercises in order to get the optimal price of some product such a potato chips, biscuits, drinks, etc. But I’ve found that some of them have positive elasticities. This can makes ...
Red Noise's user avatar
  • 111
19 votes
6 answers

What is the likely result of rent control in Berlin?

What predictions does economics make about the likely result of this policy in Berlin of capping rent prices. Berlin is freezing the rents of 1.5 million apartments for the next five years starting ...
FreeMarketUnicorn's user avatar
1 vote
2 answers

Economies of scale: when is it disadvantageous?

So, I watched a video on economies of scale. It makes sense to me but I'm wondering, is there a point where say doubling the production rate makes the product even more expensive? How can I figure out ...
Caters's user avatar
  • 111