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Worded differently: the less captive the audience, the less significant is the issue of price-gauging.
by thomassmith65 4y ago
Worded differently: the less captive the audience, the less significant is the issue of price-gauging.
- robnado 4y agoWorded differently: when the demand curve is inelastic, changes in price don’t change demand much in the short term. For more elastic curves, higher prices reduce demand a lot more, which incentivizes setting a lower price if businesses are to optimize profit.
- anticensor 4y agoYeah, pricing-based manipulation works only best if supply is completely inelastic but demand is completely elastic.