An Economics Lesson in “Baby Blues”

I rarely read the comic strip “Baby Blues,” but I did notice this one from Friday (or maybe it was Thursday):

baby_blues.gif

Now, what do you suppose the government would do in a situation like this? Somebody would feel sorry for Zoe, and say she wasn’t able to earn a living wage, and Congress would pass legislation that would prevent Hammie from charging less than a dollar for his quarters, or perhaps they would slap a $0.75 tax on quarters purchased from Hammie to protect Zoe.

More seriously, though, this strip shows how competition in the market works to keep prices at a reasonable level.

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