Presenting the Economics of Life, from the Classroom to the Real World
Wednesday, August 13, 2008
How Basic Economics Kept My Rent Stable, Today
This morning I blasted my computer speakers in order to hear my iTunes in the shower. Less than 2 minutes later, I thought about the noise [a negative externality] that my landlord and his customers are experiencing downstairs. Next, I thought about a possible threat of a rent increase [a tax] next year to limit this noise pollution. For me, the thought of this threat, alone, served as a correction of this external cost [leftward supply shift].