2 ms·
After a supply shock and a demand shock, why would profits be the same? And more to the point: you have no idea. Prices are emergent from trillions of decision
by ivankirigin 7y ago
After a supply shock and a demand shock, why would profits be the same?
And more to the point: you have no idea. Prices are emergent from trillions of decisions, and are used to communicate a great deal of information. People want to act like it's an engineering problem where we can dial up and down one part without affecting other parts, but anyone who has worked even on a controlled marketplace knows this isn't true.
Go read "I, Pencil" https://fee.org/resources/i-pencil/ https://fee.org/resources/i-pencil/