Joe doesn't sell or buy cigarettes, and he never has. But because his parents have smoked his whole life, he has problems with his lungs and heart. Joe is therefore affected by the market for cigarettes even though he isn't part of that market. This situation, according to lecture, O indicates that Joe is not being rational O requires a laissez-faire approach O means the market for cigarettes is out of equilibrium O is one where government intervention in the market might help
Joe doesn't sell or buy cigarettes, and he never has. But because his parents have smoked his whole life, he has problems with his lungs and heart. Joe is therefore affected by the market for cigarettes even though he isn't part of that market. This situation, according to lecture, O indicates that Joe is not being rational O requires a laissez-faire approach O means the market for cigarettes is out of equilibrium O is one where government intervention in the market might help
Chapter1: Making Economics Decisions
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