All action is really exchange. What the actor prefers less is exchanged for something he prefers more, including gift giving. It is a fallacy to say that the goods exchanged have equal value.

Salerno also covers elastic and inelastic demand.

The second in a series of ten lectures, from Fundamentals of Economic Analysis: A Causal-Realist Approach.

Recorded at the Mises Institute in Auburn, Alabama, on June 11, 2007.