Risky Business

How basically everyone fails to understand risk and prices

Most of us shuffle around in our microeconomic neighborhoods. We buy gas to get to work, and we notice when it costs fifty dollars when it used to cost twenty-five. We like it when we get a raise or find a good sale, and we don’t like it when something is unavailable or more expensive. Most people have a rudimentary understanding of supply and demand, but it isn’t the whole picture. Hugely important, but seldom discussed or understood is risk.