2 ms·
Given that staple food likely has fairly low elasticity of demand and food sellers in airports likely have extensive market power, I wouldn’t really make any co
by tshaddox 4y ago
Given that staple food likely has fairly low elasticity of demand and food sellers in airports likely have extensive market power, I wouldn’t really make any conclusions about “value.” If sellers increase the price from $10 to $15 and the quantity of sandwiches demanded doesn’t decrease much at all, that’s a pretty good indicator that “value” to the buyer didn’t increase much. If the sellers’ economic profits went up about the same proportion as the price did, that’s another dead giveaway.