• prole@sh.itjust.works
    link
    fedilink
    English
    arrow-up
    2
    ·
    edit-2
    1 year ago

    In a free market bigger demand results in bigger supply.

    No, not necessarily. Supply can be inelastic, in which case, an increased demand would mean an increase in equilibrium price.

    Like econ 100 level stuff.

    But that’s all bullshit anyway, because “free markets” aren’t a real thing. Supply/demand curves can be helpful to get maybe a general idea of how things work on a massive scale, and in ideal circumstances (that don’t exist). But the world is far too complicated to reduce it to that. And your econ Prof will tell you the same.