11/18

• Responses to increased demand
• accept less customers
• rationalize more narrowly
• Advantage of the market and the price system
• don't need police to ensure products aren't stolen/wasted
• we are the product police
• prices compel us to act in our self-interest
• Price System
•  forces us to make a Cost-Benefit Ratio
• we do this naturally without the enforcement of police or a czar
• force us to realize how much others value a product like water
• without this, no way/no signal to tell what people want
• under this, giving supply to people who don't want it opposed to wasting it is unethical and stupid because there will be someone who will value it more and will pay for it
• provides means to obtaining  a product even in shortages
• Black Market sales
• results in zero sum transactions
• legalization of one of these activities, ex: kidney sale, raises unethical incentives
• What determines who gets what
• usually the higher valuer
• exception: health care
• is it possible to make it independent of income
• if it is possible should it be desirable
• if it's not possible why the continued debate
• Meddling with the price system as a means to a solution makes things worse
• Money changes the nature of transactions
• solves the double coincidence of wants problem
• universally accepted currency
• divisible