
IPFS News Link • Economic Theory
Economic Impossibilities
• https://www.fff.org, by Laurence M. VanceAdding two even numbers together can never result in an odd number. Assets cannot but equal liabilities plus equities. Oil and water do not mix. Atmospheric pressure does not increase with an increase in height. When the price of a good rises, the amount demanded of the good will not rise.
Another impossibility in economics is a seller's overcharging or ripping off a buyer by means of price gouging. Yet there is a tremendous amount of resistance to such a statement — especially in my state of Florida.
I have seen a number of hurricanes threaten the Florida coast or make landfall during my many years of living in Florida. Without fail, hundreds of cases of price gouging of water, ice, plywood, gasoline, and batteries are reported to the Florida Attorney General's office when a hurricane approaches the state or after it comes ashore.
The coronavirus pandemic is the mother of all hurricanes when it comes to price-gouging complaints.