Intro to Economics

One of the central tenets of rational economic decision making is the cost benefit analysis.

Notice how cost comes first, because we are taught to see what we could lose before thinking about all that we stand to gain.

In economics this framework is used for production and consumption decisions, but you could apply it to anything. Deciding what to eat for dinner, whether or not to pull an all nighter, whether or not you should text him back.

Word problem #1: If supply goes down, because maybe he changed his mind, maybe he realized that you liked him a little too much, maybe he hated your laugh or couldn’t stand the way you stole the blankets, or maybe you were a little too much.

If supply goes down, what happens?

A sound economist will tell you the price goes up and quantity demanded goes down.

Boy does price go up, but if anything you want more. As it slipped through your fingers you remembered when you had it in spades and you’re in calling in all your favors from the universe, praying to all the uncertain gods, crossing your fingers, wishing on a start.

The price has gone up after all.

Word problem #2: If the demand for your dry humor and way you kiss him (like every hope you had is on your lips, like the sun is blooming in your chest) goes down, what happens?

Both price and quantity go down.

You aren’t worth much, you don’t have a lot to give.