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Pastimes : Austrian Economics, a lens on everyday reality -- Ignore unavailable to you. Want to Upgrade?

To: Wildstar who wrote (133)	9/19/2002 4:35:04 PM
From: Don Lloyd	Respond to of 445

Wildstar, [[We know only one thing when there remains only one buyer at a given market price. That buyer has a higher subjective marginal utility for the given quantity of plywood than he does for the market price expended. For everyone else, the order is reversed. I'm not necessarily willing to call that an objective comparison, but it's the only comparison there is.]] Fair enough. On second thought, we know a little more. Not only is the subjective marginal utility higher for the plywood than for the money expended, but it is higher than that for any possible alternate good or service that could be obtained in exchange for the money. This is probably just making explicit something already contained in the subjective rankings. Regards, Don

To: Wildstar who wrote (133)	9/28/2002 2:14:10 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 445

Wildstar, An Austrian economic puzzle - Gus and Sam are identical twins and artistic craftsmen. Gus is exclusively a goldsmith and Sam is exclusively a silversmith. Gus has $10,000 in cash and $10,000 worth of gold inventory that he intends to use to make gifts for friends and family. Sam also has $10,000 in cash and $10,000 worth of silver inventory that he intends to use to make gifts for friends and family. If Gus and Sam then agree to exchange $5,000 worth of gold for $5,000 worth of silver, what is the likely economic effect, if any? Regards, Don