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Supply and demand is the simplest possible model for pricing, and only applies in certain contexts. The argument I'm trying to make comes close to suggesting t
by mumblemumble 5y ago
Supply and demand is the simplest possible model for pricing, and only applies in certain contexts.
The argument I'm trying to make comes close to suggesting that their bread functions as a sort of Veblen good. Which is an example of a kind of product whose pricing dynamics are slightly more complex than can be neatly explained by the econ 101 model.
- lotsofpulp 5y agoSupply and demand applies in all contexts. A veblen good simply has a different demand curve, but I would need to see more evidence that bread of all things would be a Veblen good, which are due to their (presumed) utility for displaying status. Or maybe I do not hang out in circles where bread is considered a status symbol.