The Perfectly Inelastic Unicorn ( November 11, 2011)

Are there any substitutes at all for diabetes? For certain cases, better diet and better workout is the perfect substitution or prayer. Regardless of the price, you are going to buy it. The ability to want and get it is demand.
Are you going to stock up if you have the chance to be getting diabetes? At one point, yes, so demand curves will not go up and down. The inelastic curve is the same as the unicorn, if it is a myth. People are willing to spend on the market for health care.

The method of distribution and splitting the check, we would spend more on health care and have less on it in the USA. We do everything and everything for health care. Well no, if we are desperate then we would go on a high diet. There is a substitute for everything.

Income elasticity of demand:
% change in Quality Demand/ Change in Income
Normal when >0 and inferior when <0, how much my consumption changes when my income changes.

Income and Consumption vs. Prices and Consumption

Cross-Price Elasticity of Burritos and Pizza
When prices goes up, burritos goes up, pizza goes up
Subsitutes vs. complements

A small change in supply. Supply of Japanese swords increase after advertisement. If you are going to make something, then others will want it. So supply is part of the price. More likely to ride the bus than airplanes. Rizzo values his time more so the time cost is the oppurtunity cost of planes vs. the buses.

Whare are costs?
They are actions; they are tired to an action, not a thing.
To whom; Who is hearing the tradeoff?

Why does it cost more for a bicycle thana a picnic table?
Prices going to the bicycle is due to the employee is highly valued to the one that makes the picnic table.


Cutting grass by hand might be cheaper than using sheers or a lawn mower. To manufacturing the bike is cheap but the metal can be built somewhere else.
The people will have augmentations since they can be talented in such jobs.

Concepts for Supply Curves: Cost + Supply
Quantity Supplied: Amount of a good firms are willing to produce at a particular price.
Law of Supply: When the prices of a good rises, the seller of a good will make more.