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"Induced Demand" is often, incorrectly, talked about as a shift in the demand curve in response to increase in supply. There is no shift. I am addressing this

"Induced Demand" is often, incorrectly, talked about as a shift in the demand curve in response to increase in supply. There is no shift. I am addressing this common misunderstanding, not debating the wording in the Wikipedia article. "Induced Demand" is a misnomer, as the demand was always there at the given price. It is not induced, just realized. If I offer you a gold bar for $0, did I induce your demand to accept it? Most people will always have demand for goods offered below their perceived intrinsic value. Ultimately it's semantics around definitions, but the thinking of lay people around this concept is typically more of the shifting demand curve, not realization along the existing curve

fluoridation 2y ago
>"Induced Demand" is a misnomer, as the demand was always there at the given price. That's not necessarily true. Suppose you're the government and you produce food for free, and every year people eat everything you make, and everyone is well-fed. You decide you want to prepare for a famine, so this year you start more farms such that next year you make 20% more food. The first two months you're able to save, but when people see that there's more food available, they change their habits and start doing even more exercise than before, and so they eat more until they eat all the food every month again.