Heilbroners Worldly Philosphers

1. People looking to trade in their old car for money off of their new car become discouraged with the low trade in value, and decide either not to buy a new car at all or to buy a cheaper model. The lower car sales is a reduction in demand, because the decrease in resale value of used cars is not changing the prices of the new cars, as a change in quantity demanded would suggest, …

…reduce the demand for the courts. If tennis courts were privately owned, than this particular court would have a fee to get in, and, as the courts started to get over crowded, the fee would go up. Then, somebody else in town might start to run a court of their own and the some people would go over there to play, and then the competition between the two courts would keep them from over charging.