516 Miller Economics Today, Nineteenth Edition
Chapter 3 Demand and Supply
Congestion Pricing for San Francisco
San Francisco and other cities are examining congestion pricing, which has been successfully used in
European and Asian cities, as a way to reduce traffic congestion. In London, for example, drivers were
initially charged an $8 fee, which has since increased to $14,
business district. Before the congestion fee was implemented, traffic congestion was a major problem
U.S. Agricultural Subsidies and Globalization
The U.S. government began subsidizing U.S. cotton farmers in the twentieth century to allow them to stay
in business. The purpose was to insulate them from fluctuating market prices that could bankrupt cotton
farmers as a result of world market conditions beyond their control. The farm lobby has made sure that
cotton remains a subsidized product, protecting to some extent cotton farmer income.
Lecture Extender Examples 517
Is Dental Care Becoming an Inferior Good?
A British health minister once claimed that the demand for health care is infinite because everyone is in a
losing battle against death. This is not so for American dentistry, however. As aggregate U.S. income levels
have risen during the last 25 years, overall spending on dental care services has declined.
It is not that fewer Americans are seeing dentists each year. They just do not require as many fillings or
The Global Financial Crisis and the Price of Oil
In the summer of 2008, the price of oil reached a peak of $147 a barrel, with gasoline reaching more than
$4.00 per gallon in much of the United States. The global financial crisis struck in September 2008, which
ushered in a worldwide recession. The price of oil fell to below $60 per barrel, and gasoline fell to less than
Brunettes Now Have More Fun
nificantly
Thai Gadget Makers Raise Production When LCD Prices Fall
Beginning in 2004, the prices of liquid crystal displays (LCDs), which are key components in many
electronic devices, fell significantly. As LCD prices fell, Thailand-based manufacturers of electronic