EconTrot

Jason Fox has clearly mastered the concept of complementary goods:

Complement.jpg

However, I think Jason needs a refresher course on the price elasticity of demand.

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Funny. But what makes you

Funny. But what makes you think he needs a lesson in elasticity? Do you that price is too low (or too high)? Seems like that would depend on the size of the cups, which is not apparent from the cartoon.

Interestingly, this relates to the origin of the saying "there's no such thing as a free lunch." In pre-Prohibition days, taverns would offer free salt-pork sandwiches to workers at lunchtime -- and then sell them expensive beer.

$50 for cup of lemonade,

$50 for cup of lemonade, even for a very large cup--and even with free (extra-salty) popcorn--seems just a bit excessive. Since popcorn/lemonade have many substitutes (chips and coke, cookies and milk, khlav kalash and crab juice/Mountain Dew), and are closer to luxuries than necessities, I would say that the bundle is highly elastic.

D'oh! I thought it was 50

D'oh! I thought it was 50 cents, not 50 dollars. Point well taken.