Freakonomics Chapter 3

Topics: Capitalism, Free market, Market economy Pages: 3 (954 words) Published: May 11, 2011
“The point to remember about selling things is that, as well as creating atmosphere and excitement around your products, you've got to know what you're selling.” (1) (Wilde Stuart). A market economy is a financial system in which the value of goods and services are determined in a complimentary cost structure which is termed as a free market system. Market economies can assort in theory from pure laissez-faire variation to a variety of real-world mixed economies, where the price scheme is in hands of several government control or heavy regulation. This is very difficult to assess that technology has altered radically in the previous decade and are bound to revolutionize supplementary sources in the coming outlook. “The effect of technological change on the market for goods and services” principally are complex to visualize or picture, and a miniature quantity to predict. Technology facilitates to mount the people’s chain of command. Since people give the consciousness in hold of information as they mature, economic demand logically raises. Conventional wisdom is the accepted piece of information on a positive focus, and can be carried forth by specialists and journalists, or even advertising. Advertising is a large technique to modify conventional wisdom. In the book Freakonomics, Chapter Three (2) (Levitt and Dubner), with wide-ranging study of the data, the authors were able to demystify the common awareness that crack dealers are all very rich individuals. They initiate that, although a few partakers in the drug business make profit tremendously from their involvement, but the stakes who usually lead the organization, rather than the outsized numbers of street dealers who form the subordinate ranks of the cluster earn the heart of the profit. The demand for drug supply from the society increases with the supply of drugs from the sources. As the price of drugs decreases appropriated to lots of street gangs around, the demand from...
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