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That's like saying "there are no perfect spheres in the real world, ergo Newton's Laws are bunk." I am not a simpleton. I am aware that perfectly elastic suppl
by lr4444lr 2y ago
That's like saying "there are no perfect spheres in the real world, ergo Newton's Laws are bunk."
I am not a simpleton. I am aware that perfectly elastic supply and demand curves pushing to static equilibrium is not how the world works in practice. But if economics as a study of resources and its markets is going to be a rigorous field, it has to start from some general principles and then explain how paradoxes are consistent in a general framework of limited resources and unlimited wants. Otherwise it's not a serious discipline, just ideologues playing with SPSS on data sources of quality we can only guess at.
If there building more houses does not lead to an easing of prices on houses, then we deserve an explanation and a rigorous confirmation, not speculation.