[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,♪ [music] ♪
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Tyler] Now Socrates --\NI actually disagree with him --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,he said the only true wisdom\Nis in knowing that you know nothing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So I'm an economist.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I'm not a philosopher.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So what does the economist say?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The economist does not say\Nthat he or she knows nothing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The economist says \N"I know one thing --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,maybe it's only one thing,\Nbut it's one thing."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And that one thing is
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that the demand curve \Nslopes downward.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,(audience laughing)
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And I know some \Nof you are thinking
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,what about Giffen goods?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But there are no Giffen goods,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,certainly not in wealthy, modern, \Ncontemporary America.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We have at least one thing to teach\Nand in my imaginary lesson
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,or I just have someone,\Nand they're paying attention.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,First thing I tell them is \Nthe demand curve slopes downward,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and then I would discuss for awhile,\Nhow many applications of economics
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,are really instances \Nor generalizations of this principle.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,If something becomes more expensive,\Nyou do less of it.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So I just came here from Montreal,\Nand originally my wife and I were
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,going to spend the weekend\Nin Montreal
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,before what I was doing there,\Nmy event there.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,She went to Orbitz\Nand she saw that the price
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of flying to Montreal \Nwas about $800,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and I said, "Oh, come on,\Ngo anyway."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Her demand curve \Nsloped downwards.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It's very, very simple.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So that's like what we do know,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and what we don't know is
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,well, the world changes \Nin many ways.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There are a lot of effects going on\Nthat are not just price effects.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,People may change their tastes \Nor their expectations, right?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Then you're not always sure \Nhow the law of demand applies there
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in a simple way.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Another set of things\Nwe don't know --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we don't always know \Nwhat is the real price?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So if you go to the store --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,say, you need \Nto buy ping pong balls.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You know the price, right?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,They're pretty cheap.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It's not really \Na very ambiguous decision.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You buy the ping pong balls\Nor you don't -- the price is clear.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Economic theory applies very well\Nto this kind of circumstance.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But say you're dealing \Nwith one of your children