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>An exchange system weights the demand input to market price determination based on the wealth of the individual. What does this mean? Do you mean that rich pe
by ameister14 9y ago
>An exchange system weights the demand input to market price determination based on the wealth of the individual.
What does this mean? Do you mean that rich people can buy more and so have more impact on overall demand? Or that they can afford to pay more and so cost stabilizes at a higher point than it would otherwise?
- dredmorbius 9y agoYes. (Not OP.)
- aninhumer 9y agoThe former. The rich have more to spend, so in the pricing mechanism their demand counts more than that of the poor. This makes the idea that prices reflect subjective demand highly suspect.