https://www.cnn.com/2023/06/09/economy/us-inflation-high-prices-consumer-demand/index.html

That means a business can essentially set prices as high as it wants, as long as they aren’t so high that they drive away the customer base. In other words, it’s Econ 101: Good, old-fashioned supply and demand.

:AmISoOutOfTouchmeme: Could it be greed? No, it's the customers fault.

  • EmmaGoldman [she/her, comrade/them]M
    ·
    vor 2 Jahren

    Supply and demand curves are bullshit and largely not considered an objective thing even within the bullshit that is econ. Supply and demand is kind of a shorthand for communication purposes, and isn't really an important factor. Unlabeled axes and the likes.

    The concept it's intended to communicate ie that for a given quantity, quality, and price of a good, there is a given consumer demand for it. The difference between elastic and inelastic demand is that as the price changes, the demand will change greatly for elastic goods, but will remain largely the same for inelastic goods.

    Elastic goods are things like cookies and luxury cars and $3500 VR headsets. Inelastic goods are things like soap, rent, and staple foods.