You chat. It’s nothing.
(When demand increases, price increases; but when price increases, quantity demanded falls!)
Wow, that’s cool.
(The price mechanism rations the limited goods and services to those who are most willing and able to pay, based on dollar votes.)
So what that’s what you do?
(The price mechanism achieves allocative efficiency.)
(But we have to make a lot of assumptions.)
(The government sometimes likes to intervene in markets by giving out subsidies. For example, Edusave is provided to all students to correct for market failure in education.)
Nice. Yeah I like that too. Totally relatable.
Perhaps it’s growing into something?
(In the real world, assumptions about perfect competition often don’t hold, that’s why the free market fails.)
What do you mean?
(Congestion problems on the PIE are generating external costs for society again. These external costs are not taken into account by private road users and there is over-consumption and market failure…)
Ouch. That’s sad. I feel you.
Just listening. That’s all.
Spend days together. Afternoons, evenings, mornings.
Have breakfast together; take the trains together; listen to the same music together.
Yes: all those Independent Learning Time spent together.
Days turn into weeks. Weeks into months.
And soon a year has passed.
And the rough patches inevitably arise.
(Due to mutual interdependence, oligopolistic firms prefer non-price competition. This is explained by the kinked demand curve. However, firms can occasionally lapse into a price war, which hurts everyone’s profits but benefits consumers in the short-term.)
You’re really confusing you know!
(In contrast, monopolistic competitive (MPC) firms are independent and make decisions on pricing and output without considering other firms’ perspectives. Due to minimal product differences, consumers still consider most firms’ products to be close substitutes. As a result, firms are forced to be productive efficient and cut costs and lower prices to compete.)
I don’t understand why you would say that.
(In general highly competitive oligopolies may be better for society than MPC firms due to larger extent of economies of scale and more profits and funds for innovation. However these situations are rare in reality…)
Can we talk this over?
And you share your pain.
(And, after getting your first U in Econs)
They made me feel so useless.
(And, after getting called to go up on stage during Econs lecture)
That was the most embarrassing moment of my life.
(And, after failing Econs in Prelims)
I was devastated; depressed.
And your joy.
(You passed your first Econs test.)
I’m so happy this happened today.
(You were able to complete a full essay paper.)
(You improved from a U to a C.)
So grateful that these things are happening for me.
You go through the lows and the highs.
(The Us and the Cs. Umm… yeah, C.)
And one day, you wake up, and, you’re in love.
Well obviously I’m not actually suggesting that you start having an imaginary friend named Econs.
But I do encourage students to spend some time to appreciate the subject and its connection to the real world and their lives. While the post is meant as a joke, some parts have some truth in them. We could do with a bit more curiosity and patience for the subject. Stick with the struggles and find ways to overcome them.
You might just be surprised with the outcome.
Till next time, dream economics.