Principles of Economics: Microeconomics - Elasticity of Supply: Do Gun Buybacks Work?

What happens when a new buyer enters a market with a perfectly elastic supply curve? A supply and demand graph tells the tale: the quantity sold increases, without impacting the equilibrium price. Alex Tabarrok uses this elasticity model to explore the real-world effects of local gun buybacks in the US. They’re often presented as a means to reduce the number of firearms in a community–and thus, supporters argue, to reduce crime and accidents. To an economist, these programs just temporarily add one new buyer (the police) for a good that’s available in practically unlimited quantities at the market price. They don’t change other buyers’ incentives and preferences. The perfectly elastic supply means that the only result is a few more sales at the market price. Whether you think local gun buybacks are a good or bad policy, the economics of supply elasticity make it almost impossible for these programs to have an impact on firearm ownership. *TEACHER RESOURCES* Supply, Demand, & Equilibrium assessment questions: https://mru.io/u4h High school teacher resources: https://mru.io/t6u Professor resources: https://mru.io/s82 Next video: https://mru.io/wj5 Practice questions: https://mru.io/6ho Full microeconomics course: https://mru.io/t7w 00:00 Do gun buyback programs really work? 00:45 National gun market 01:10 Local gun market - perfectly elastic supply curve 01:52 Increase in demand - New buyers (police officers) 03:39 If price doesn't increase, nothing really changes 04:22 When it can work - Australia pairing buybacks with law changes