Series
Price Check
Why did that price go up? The same five questions, applied to a different market each time.
The toolThe Price Detective Checklist
Supply and demand. What shifted, and how strongly do buyers and sellers respond?
Shifts in supply or demand; price elasticities of demand and supply
Government. Did a price control, tax, subsidy, quota, or tariff change?
Price ceilings and floors, taxes, subsidies, quotas, tariffs, and mandates
Market power. How competitive is the market?
Number of sellers, barriers to entry, and how many alternatives and substitutes buyers have
Price discrimination. Do different buyers pay different prices for the same thing?
Price differences by customer, place, or payment that costs don’t explain
Inflation. Is it one price, or nearly all prices?
Monetary policy of the Federal Reserve and fiscal policy of the federal government
Readings in this series
How prices work, what goes into a gallon, why prices jump so fast, and what government can and can’t do
Price CheckWhy Are Groceries So Expensive?How prices work, what goes into a grocery dollar, why some foods jump more than others, and what government can and can’t do
Price CheckWhy Is Housing So Expensive?How prices work, the policies that push housing demand up and hold supply back, and why Tokyo rents are a fraction of New York’s
Price CheckWhy Does College Cost So Much?How prices work, why the sticker price is rarely the real price, and the policies that push college demand up and hold supply back
Price CheckWhy Is Health Care So Expensive?How prices work, who really pays, and the policies that push health care demand up and hold supply back