Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca

. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Saturday, December 04, 2004

Change in Demand vs. Change in Quantity Demanded

Here is yet another journalist who doesn't understand the difference between a shift of the demand curve and a movement along the demand curve, (Quoted from WSJ OpinionJournal; tip provided by John C.)

Kelly Zito, Economic Illiterate
From an article by Kelly Zito, a staff writer for the San Francisco Chronicle:
'Some economists have warned for several years that housing markets in expensive cities like San Francisco could become victims of their own success. That is, sky-high home prices could drive consumers from the market, forcing property values lower.'
Uh, yeah, Kelly, that's what's called "the law of supply and demand." Seriously, you can look it up.
This one belongs on the end-of-term exam!

If this writer really talked to "some economists", I would love to know who those "some economists" are. And, no, the writer is not speculating about the adjustment paths of prices over the long run. The full article is here, and it displays pure economic ignorance.
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