3 ms·
In the context of rice...We already produce more rice than people can eat, so there's no driving force for supply to increase. Increasing supply would only make
by ebg13 7y ago
In the context of rice...We already produce more rice than people can eat, so there's no driving force for supply to increase. Increasing supply would only make more rice go unsold. It's not like just because you have more money now you biologically need to eat more volume too.
- nicoburns 7y agoWell if people already have enough rice, then presumably they would spend the extra money on other goods that they don't have enough of.
- ebg13 7y agoUnless the price of rice goes up. If they're buying rice now instead of something else with limited funds, that suggests that they need the rice more. Goods aren't all perfectly exchangeable. If you need shoes, a shirt won't protect your feet.