3 ms·
If enough sellers band together and set a minimum price level for a good with low elasticity of demand (meaning people need it no matter what and will sacrifice
by lotsofpulp 2y ago
If enough sellers band together and set a minimum price level for a good with low elasticity of demand (meaning people need it no matter what and will sacrifice other parts of their budget to obtain it, like shelter), then the higher prices could lead to higher revenue even though fewer units are sold (due to higher per unit prices).
- r00fus 2y agoYes, this is what Cartels do - and that behavior is generally illegal - but requires a government that cracks down on this. In China this level of crime gets you sent to re-education camps or just executed.