This term we’ve focused on traditional goods markets, though you may have not noticed that. Here’s a good post on why some services look quite different. For me there’s an additional positive feature: it’s done with multiple references to the market(s) for passenger cars (and for haircuts, cf. our in-class discussion of a local cartel). See Healthcare and Cars on the Synthenomics blog.
Now when might this issue carry over to markets for goods? In the next couple weeks we’ll see multiple examples where focusing primarily on price and quantity fails to explain market behavior.
PS please note the modest changes in the syllabus for next week, including a reference to the proper chapter in the Martin text.