Chapter 2 of The Undercover Economist

In Chapter 2 of "The Undercover Economist," Harford explains that supply and demand isn't the only reason why people pay high prices. Hartford starts off the chapter using the London Eye as an example of scarcity power because it is a unique landmark, but it's also something that's optional. Hartford stated, "Everywhere you look around the Eye you can see vendors with scarce resources, trying to exploit that scarcity. Costa Coffee is the only coffee bar in the immediate area, for instance (page 31)." Hartford says that people can choose to not go to the London Eye, but because it's there and it's so unique, it draws people to pay money to be able to go. Hartford also brings in the idea that supermarkets have bought into the idea of price targeting.  He says that, "Above the main concourse of London’s Liverpool Street station, there’s a Marks and Spencer “Simply Food” store, catering to busy commuters on the way in and out of London (page 40)." This idea is prevalent to his main idea in his writing because he talks a lot about how important it is to have a good location if you're a retailer. Having a market right in this specific area, it can provide the retailers for a much better advantage when consumers come by because there are thousands of people who pass by every single day.