ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book introduces some fundamental economic principles. It examines demand and supply curves, how price and the amount of the good sold are determined in a competitive market, elasticities, and the effects of government intervention in the market via taxes, subsidies or price controls. The book considers a basic economic term that is often misunderstood – the idea of cost. It examines the preferential tax treatment of some activities, such as oil and gas exploration. The book also considers the elasticity of the murder rate with respect to the probability of execution, given a conviction of murder. It then considers the elasticity of the supply of transplantable human organs with respect to the amount paid for them. The book focuses on Lojack, an innovation in law enforcement that increases the probability that automobile thieves are apprehended.
