Moral Limits of Markets March 12, 2020 Q: Are all goods suitable for distribution through the market Are there some goods that should not be allocated to the members of society through the market mechanism Are there some goods that should not be allowed to be bought and sold for moral reasons in Canada
healthcare is socialized, not apart of the capitalist marketplace
Richard Posner / Gary Becker Position Everything should be distributed by the market Macro: systemwide economics Micro specific markets or behaviour of people/groups in the market Where demand and supply meet, goods are moving efficiently through the market (market equilibrium) When market forces (D & S) operate w/o
interference, a price will be reached such that goods brought to the market will be bought immediately, and there will be no goods ether sitting idly in inventory or backorder.
market is in equilibrium] Price is set in open competition by the interacting forces of demand and supply.
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When the price is set too high, SD When the price is set too low, S
The only suppliers still in the market
are the very efficient ones; inefficient suppliers drop out because the price is too low
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