> If elasticity were the only consideration in pricing, we should expect food to be break-the-bank expensive, but it clearly isn't. Because welfare (and subsi

> If elasticity were the only consideration in pricing, we should expect food to be break-the-bank expensive, but it clearly isn't. Because welfare (and subsidy) programs exist so people aren't desperate for food, just like people who are covered under medicaid are not desperate to pay for health services. There is really no mystery here.