supply elasticities are always and everywhere, zerohttps://twitter.com/FreedomWorks/status/1056685807300435969 …
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Replying to @eigenrobot
pretty clear that subsidies increase prices, though, innit? because now the market will bear more. obverse of how everyone who works at Walmart is on food stamps: given food stamps the labor market can work for less so it does
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Replying to @chaosprime @eigenrobot
last time i posted about that several people corrected me that Important Economic Laws dictate that the opposite must happen which absolutely confirmed me in the observation
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i mean, okay, supply elasticity, but the subsidy now forms an absolute floor to the price, and if the subsidy is elastic you don't even need to compete to collect it. normally price reduction relies on greed overcoming natural instincts to cartelism but that's shot now
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