The Reasonablists are having an end-of-life party, but haven’t paid for the park reservation fee. The leader offers to pay with a check since he believes they won’t be around the next day to make it worth anything. Ann happily accepts because the group has been wrong for decades before.
See more: expectations, M2, medium of exchange, money, store of value, transactions, unit of account
The Reasonablists are having their end-of-life party in the local park and Ron sees an opportunity to sell his high quality wooden flutes. Because the party springs up without notice, Ron sees a sudden spike in demand for his flutes. The leader of the Reasonabilists offers Ron a check because they don’t believe it will have any value the next day, but Ron has been selling them flutes for each of their previous going away parties.
See more: demand, demand shifts, elasticity, expectations, inelastic, M2, markets, medium of exchange, money, normal goods, preferences, store of value, transactions, unit of account
Economics of Parks & Recreation 