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That's not induced demand, that's a standard demand curve. The price drops and more people buy it. Induced demand is "adding supply increased the price"
by buss 7y ago
That's not induced demand, that's a standard demand curve. The price drops and more people buy it.
Induced demand is "adding supply increased the price"
- refurb 7y agoThe best example of induced demand ignores price. Build more freeways and you get more drivers.
- AnthonyMouse 7y ago> The best example of induced demand ignores price. > Build more freeways and you get more drivers. That's like having a McDonalds without enough cashiers and then saying "hire more cashiers and you sell more hamburgers" is induced demand because the hamburgers cost the same but you sell more of them. That's not induced demand, you're just changing the price. Having to wait in line (or sit in traffic) is a cost. If you reduce the cost, demand goes up, but that's just ordinary supply and demand again.