The Secondhand Economy Topics 1. 2. 3. 4. The Principles of Economy Facing tradeoffs • • • Thinking at the Margin • • Externalities Secondhand shopping generates positive externalities Electronics can contain lead, cadmium, mercury, etc. Textiles make up a large percentage of waste. Encouraging Positive Externalities • • • • Price Elasticity Price Elasticity: • • • • • • PRICE Retail is Inelastic QUANTITY • • • PRICE Thrifting is Elastic QUANTITY Costs Total Costs • • COST • Fixed costs OUTPUT Total Costs • COST • Fixed costs OUTPUT The most efficient price when buying secondhand can be much lower because of marginal revenue. 1. PRICE Marginal Revenue 2. QUANTITY Other Costs of Secondhand • • Thrifting is growing rapidly! • • • • Works Cited