LIST OF EXAMPLES 1.1 The Market for Sweeteners 1.2 A Bicycle Is a Bicycle Or Is It? 1.3 The Price of Eggs and the Price of a College Education 13 10 5.4 The Value of Information in an Online Consumer Electronics Market 175 5.5 Doctors, Patients, and the Value of Information 5.6 Investing in the Stock Market 183 186 11 1.4 The Minimum Wage 5.7 The Housing Price Bubble (I) 2.1 The Price of Eggs and the Price of a College Education Revisited 28 5.8 The Housing Price Bubble (II) 5.9 Selling a House 2.2 Wage Inequality in the United States 5.10 New York City Taxicab Drivers 2.3 The Long-Run Behavior of Natural Resources Prices 29 2.4 The Effects of 9/11 on the Supply and Demand for New York City Office Space 31 2.5 The Market for Wheat 2.6 The Demand for Gasoline and Automobiles 2.7 2.8 The Behavior of Copper Prices 2.9 Upheaval in the World Oil Market 14 29 188 192 196 6.1 A Production Function for Health Care 6.2 Malthus and the Food Crisis 6.3 Labor Productivity and the Standard of Living 6.4 A Production Function for Wheat 43 6.5 Returns to Scale in the Carpet Industry The Weather in Brazil and the Price of Coffee in New York 46 7.1 Choosing the Location for a New Law School Building 232 7.2 Sunk, Fixed, and Variable Costs: Computers, Software, and Pizzas 235 7.3 The Short-Run Cost of Aluminum Smelting 240 7.4 The Effect of Effluent Fees on Input Choices 247 7.5 Reducing the Use of Energy 7.6 Economies of Scope in the Trucking Industry 7.7 The Learning Curve in Practice 7.8 Cost Functions for Electric Power 8.1 Condominiums versus Cooperatives in New York City 283 8.2 The Short-Run Output Decision of an Aluminum Smelting Plant 290 8.3 Some Cost Considerations for Managers 8.4 The Short-Run Production of Petroleum Products 294 8.5 The Short-Run World Supply of Copper 8.6 Constant-, Increasing-, and Decreasing-Cost Industries: Coffee, Oil, and Automobiles 310 8.7 The Supply of Taxicabs in New York 8.8 The Long-Run Supply of Housing 9.1 Price Controls and Natural Gas Shortages 9.2 The Market for Human Kidneys 9.3 Airline Regulation 9.4 Supporting the Price of Wheat 9.5 Why Can’t I Find a Taxi? 37 52 54 2.10 Price Controls and Natural Gas Shortages 3.1 Designing New Automobiles (I) 3.2 Can Money Buy Happiness? 59 77 81 3.3 Designing New Automobiles (II) 88 3.4 Consumer Choice of Health Care 90 3.5 A College Trust Fund 92 3.6 Revealed Preference for Recreation 3.7 Marginal Utility and Happiness 3.8 The Bias in the CPI 4.1 Consumer Expenditures in the United States 4.2 The Effects of a Gasoline Tax 4.3 The Aggregate Demand for Wheat 4.4 The Demand for Housing 4.5 The Long-Run Demand for Gasoline 4.6 The Value of Clean Air 4.7 Facebook 94 97 105 117 122 128 129 131 134 138 4.8 The Demand for Ready-to-Eat Cereal 5.1 Deterring Crime 5.2 Business Executives and the Choice of Risk 5.3 175 142 164 The Value of Title Insurance When Buying a House 173 169 211 212 215 221 225 251 264 268 291 297 312 313 325 330 338 260 335 322