Week #11 Commentary
1. The first image suggests that the society is scarce, Hitler uses his own face to symbolize for resouces or materials like paper and pencil during the WWII, price system helps resources to be used and distrbuted in the most effective way. If people are directed to waste goods, then the demand seems to be high, and the supply will decrease, then the price goes up.
2. The second image also suggests the world is scarce, that is why government posts the propaganda about sharing the car. People's demand are infinite, but the supply are limited.The person who value the car would pay the price he is willing to pay, and the people who actually gets the product the price they value could use the product freely and enjoyably. This is another example how price should be set freely, when people respond to the incentives and pay for the product the way they value, and suppliers supply goods the quantity and the price they are willing to give.
3. The third image wants to show us the idea that the society cannot exist with half slaves and half free, we need to get rid of slaves. But slaves are closely connected with price, slaves are cheaper labor and the society needs them to work which is demand, supply of slaves are less because we need to sacrifice for freedom.
4. The fourth image interprets the price system controls everything, people will never pay more than legal price. This means that there might be a price ceiling that the government posses and there is going to be no price set above the ceiling in the market. This might seem rationing for the poor people, however; for goods that are supposed to have a high price, when the ceiling is set, the price gets lower, which would increase the quantity demanded, then there will be increase in supply.
Question: Price system sometimes can not be functional effectively, what things can government do to help price system work better?
2. The second image also suggests the world is scarce, that is why government posts the propaganda about sharing the car. People's demand are infinite, but the supply are limited.The person who value the car would pay the price he is willing to pay, and the people who actually gets the product the price they value could use the product freely and enjoyably. This is another example how price should be set freely, when people respond to the incentives and pay for the product the way they value, and suppliers supply goods the quantity and the price they are willing to give.
3. The third image wants to show us the idea that the society cannot exist with half slaves and half free, we need to get rid of slaves. But slaves are closely connected with price, slaves are cheaper labor and the society needs them to work which is demand, supply of slaves are less because we need to sacrifice for freedom.
4. The fourth image interprets the price system controls everything, people will never pay more than legal price. This means that there might be a price ceiling that the government posses and there is going to be no price set above the ceiling in the market. This might seem rationing for the poor people, however; for goods that are supposed to have a high price, when the ceiling is set, the price gets lower, which would increase the quantity demanded, then there will be increase in supply.
Question: Price system sometimes can not be functional effectively, what things can government do to help price system work better?
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