Visualizing the Tragedy of the Commons

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When a resource is abundant, it makes sense for it to be cheap. But as the scarcity of a resource (whether it's renewable or non-renewable) is intensified under the pressure of growing demand and diminishing supply, a market failure arises if an efficient price is note established that assures the resources is consumed at a sustainable quantity. This lesson illustrates a simple supply and demand analysis of the Tragedy of the Commons.
Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! econclassroom.com/?page_id=5870

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24 июл 2024

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Комментарии : 12

@carolinec8804 4 года назад

You rock, thank you so much for all these videos!!! I am going through them all.

@TheWildWalker1 3 года назад

This series was really such a helpful and useful. Thanks ..keep moving.👍

@leyki7090 2 года назад

Where can I find this graph in literature?

@Audi8430 5 лет назад

thank you sir

@arthurcainii 6 лет назад

~8:38 Doesn't a "Free Market" imply a price system? Also, a free market would facilitate ownership of these otherwise-unowned areas via some form of homesteading. Governments can't perform price discovery, because they can't identify market signals. They don't produce anything that wasn't reallocated from someone else's productivity, and any failure of a government program to read market signals merely expands its budget. International/Government ownership of resources are even more exploited, because those who enjoy the development rights to a resource are going to be necessarily politically-connected.

@leetaituha4186 4 года назад

Precisely..your absolutely right...i've given my response above...this muppet economics teacher has no fricken idea what free Markets are...to think literally thousands of young economics students are taught this bullshit..well done for pointing it out...They just dont past their basic fallacy where they think society should be run by brainy academics that try top look intelligent because they can draw a demand curve and look all intelligent, then prescribe the contagion to cure the disease....muppet show literally...they might as well draw a picture of batman or something. Anything they can do to get to the conclusion that mummy and daddy government have to step in and wipe societies ass like individual people cant do a basic thing like set a price for their product and see how the market place responds, then you set another price until society all on its own gets on with life, while these academics and politicians stand to the side in impotent rage as regular people just get on with it...

@minilamma4879 9 месяцев назад

Bomb music

@abdullahsaeed11 7 лет назад

aren't forests technically owned by the countries that they are found in? same with minerals and fossil fuels..

@child9125 7 лет назад

That's my question too.

@magiaworld1383 3 года назад

Well, multinationals such as Chinese rare mineral mines, have taken the tragedy to another level trespassing borders through contracts

@davidhadley3433 2 года назад

But supply curves are determined by marginal costs of production not by the availability of a natural resource, so this analysis is fundamentally incorrect

@leetaituha4186 4 года назад

An absence of a 'pricing system' is not characteristic of a 'Free Market'. You obviously do not understand what a 'Free market' is. The Tragedy of the Commons occurs when a Free market is not allowed to operate, have you ever heard of a harvester, fisherman, wholesaler, or retailer producer for that matter who do not allocate a price to their offering? What is a solution?, precisely the opposite to what you have tried to explain, get government out of the way and allow people to freely set prices, and you will find a spontaneous order occurring without one politician in the picture. You have attempted to outline a solution to an issue in which your solution is the very reason why the tragedy occurred in the first place. You are attempting to outline a how Capitalism is used to explain failures of governments being advised by Economics luminaries that espouse these fallacies. You were perfect right up until the end, where you tried prescribing the contagion as the cure...