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>If the price is too high to be bought, the seller can't sell anything. This is the trick in your sentence. We're talking about aggregate demand and aggregate
by frgtpsswrdlame 9y ago
>If the price is too high to be bought, the seller can't sell anything.
This is the trick in your sentence. We're talking about aggregate demand and aggregate supply but at the individual level there is certainly the possibility that the price is too high for someone to buy.
Here's the problem, economic utility cannot be a moral guide in this situation, look at this example:
(1) Water is normal price but with a limit per customer or lottery.
(2) Water is very expensive and the richest person or people in town buy a lot and hoard it.
#2 generates a lot more economic utility, but we can all agree that it's not an optimal situation here.