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Those don't seem to be the same effect as buying fancier coffee because it seems like a comparatively better deal per pound. Prohibition makes a product hard to
by srtjstjsj 8y ago
Those don't seem to be the same effect as buying fancier coffee because it seems like a comparatively better deal per pound. Prohibition makes a product hard to get in desired volumes, beyond just price, so you want as much as you can get when a window opens; you can dilute it yourself at home later. It may be the case that demand an't be satisfied by buying weak lots in low quantities.
- greggyb 8y agoIn economics, "price" is pretty inclusive. Price is usually considered in terms of opportunity cost, and dollars (or other currency) are a nice proxy to use. But, the thing you think is a confounder here "prohibition makes a product hard to get in desired volume" is pretty much equivalent to an economist as saying "the price went up". There is no really meaningful difference. I have to expend more - either currency (to some bootlegger or intermediary, to cover their risk), time/effort (to find and get to a seller), or risk (I might get caught and go to jail - we can put a price on imprisonment).