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Seinfeld Economics: The Pony Remark

by Linda Ghent

price ceiling is a government-imposed limit on the price charged for a product. If the price ceiling is set below the market equilibrium price, a shortage will occur. This leads to a rationing problem.

A rationing mechanism is a system for choosing who gets how many goods during a shortage. Long lines are often used to ration goods in shortage (so the good is distributed on a first-come, first-serve basis). In addition, black markets often develop as a way of rationing goods that are in shortage.

 

Seinfeld: The Pony Remark

In the coffee shop, Jerry and his friends discuss someone's rent-controlled apartment. “50 years...they pay $300 a month.” Later, there's a scene at the funeral home where they try to convince a grieving spouse to let them move into the apartment.

from Seinfeld, Season 2 (1991)
Creator: Larry David & Jerry Seinfeld
Posted by Linda Ghent
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