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And in economics 102 they teach you that price elasticity of demand is rarely if ever at unity, and it's not generally even a linear function. For a good like T
by cirgue 9y ago
And in economics 102 they teach you that price elasticity of demand is rarely if ever at unity, and it's not generally even a linear function. For a good like Tesla, this is especially true, because income distribution is close to a normal distribution, not a uniform one (which is the circumstance where you would expect to see linear price elasticity of demand).
- pc86 9y agoThat's not even Econ 102, that's.. week 4 of Econ 101.
- robomartin 9y agoAnd in the real world you learn that price elasticity is a suggestion rather than a law.