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"People became price-inelastic." Isn't it the opposite? The tutution became increasingly inelastic. Consumers would technically be more elastic given the highe
by giantg2 3y ago
"People became price-inelastic."
Isn't it the opposite? The tutution became increasingly inelastic. Consumers would technically be more elastic given the higher credit available.
- t_mann 3y agohttps://en.wikipedia.org/wiki/Price_elasticity_of_demand https://en.wikipedia.org/wiki/Price_elasticity_of_demand
- giantg2 3y ago"A good's price elasticity of demand" Yeah, so the tuition is more inelastic, not the people.
- t_mann 3y agotechnically, it's demand that is meant here by what's elastic (or not). there's also a price elasticity of supply (eg, if tuition goes too low, some colleges will close). the way the GP used the term was understandable to me, and how I'm used to seeing it used. it's basically shorthand for 'people's [demand for college degrees] became price-inelastic'. if you want to use it differently in your communication, it's up to you. just remember that people might understand something other than what you meant.