3 ms·
Your explanation presumes fixed demand.
by pault 9y ago
Your explanation presumes fixed demand.
- Consultant32452 9y agoNo it doesn't. Here's at least three alternative presumptions: 1. Demand is not perfectly elastic 2. Demand is perfectly elastic, but supply was increased more on the lower end of the income range which reshapes the income distribution. 3. Trade policy reduced demand in the middle of the income range.