Commentary
Yesterday, sitting at the airport, I bought a small 16-ounce bottle of water. The bill: $6.00. To be sure, this was the airport where the elasticity of demand is more vertical. Thirsty travellers are going to pay the bill.
Also it was Las Vegas, a lovely and exciting town but certainly a place where you want to hold your wallet very tightly. A cocktail around the pool will run you $35 and the breakfast buffet is $70 per person plus a tip for the person keeping your water glass full. Not even coffee in your $800 room is free.
In the 1950–1980s, the Vegas food buffets were famously affordable because casino revenue subsidized them all. That’s all over. Bartenders today tell me that everything in the city is up four times from two years ago….