Application 1: Scarcity/Incentives

The economic solution to spam

Computer Spammers use increasingly complex methods to gain access to personal information by bypassing software filters.  To increase the number of successful spamming of individuals the Spammers use spam programming that scours the web, by “scraping” anything that resembles an email address from sites, news groups, chat rooms, and subscriber lists. The negative effects forced by spam includes wasted time for customer because they have to wade through irrelevant advertisements in their inbox.  This also increases the costs

Application 2: Opportunity costs

How fast to sail?

To make the correct decision, we need to consider the advantages of the decision and the costs. The essential cost concept for basic leadership is that of the opportunity cost, what you sacrifice to get something, an opportunity cost can include both time and money. For example, when assessing the expenses of playing golf, some

Application 3: Law of Supply and Demand

Law of demand and Cigarettes

Application 4: Market Analysis (Equilibrium)

Equilibrium: Honeybees and the price of ice cream

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