Employees Relieve Stress And Pressure Through Discussions (ePub)

I do. In this life there are many expensive things. Of course, sometimes this is a natural result of scarcity. For example, there are not many apartments with views of Central Park in New York or Hyde Park in London9. Because many people like these apartments, their prices are very expensive, and in the end many people are disappointed because they cannot buy them. There is nothing wrong with this either. But one thing that's a bit puzzling is why fried corn in butter at movie theaters is so expensive - there's no shortage of that stuff there. So the first thing we want to do is distinguish between the different reasons why things cost so much.

In Ricardo's arguments, we might want to know the different causes that lead to high prices. Understanding why pasture is so expensive is only mildly interesting (unless you're a real farmer) but the matter becomes especially fascinating if you know why your apartment is expensive. There is such an exorbitant price, or whether the bank is playing us a trick is equally within our scope of concern. However, we can start with fertile pastures and apply what we know. We know that the rent on the best land is determined by the difference in fertility between that good land and other marginal land. Therefore, the obvious reason is that the high rent may be that the good land yields more grain crops than the other marginal land. As mentioned in the previous sections, five bushels of grain are equivalent to five dollars at a rate of one dollar per bushel of grain, but if five bushels of grain cost $200,000, then five bushels of grain will worth $1 million, no less. If grain is expensive, then it is natural for rare grain-growing pasture lands to have high prices.