Tuesday's Assorted Links
The sugar industry, hospital pricing transparency, congestion pricing, CEO pay, and extreme weather
Hi y’all! Here are five stories from this week that contained some neat applications of economic principles or are related to teaching:
Weight-loss drugs like Ozempic have caused people to cut back on sweet treats like candy, ice cream, and baked goods [Yahoo! Finance]
Rapper Fat Joe is advocating for transparency in hospital pricing [NPR]
NYC’s controversial congestion pricing halted indefinitely [CNN | Previous MME coverage]
CEOs made nearly 200 times what their workers got paid last year [Associated Press]
Extreme weather brought on by climate change is hitting the specific regions that supply some of the world's favorite things to consume — coffee, chocolate, olive oil, wine — and driving up prices [The Wall Street Journal]
With inflation steady yet high and minimum wage hikes spreading, restaurants are adopting service fees to stay profitable. Rather than raising menu prices, which can reduce orders, these fees are intended to cover higher wages and ingredient costs. This approach addresses the issue of "sticky prices"—the resistance to changing prices frequently due to costs and potential negative customer reactions.
An Economic Perspective on Service Fees
Are you an educator looking for ways to introduce this week’s newsletter into your classroom? Sign up for the Classroom Edition of Monday Morning Economist to get assessments and lesson plans delivered straight to your inbox every week.