3 ms·
NY price gouging law: http://codes.lp.findlaw.com/nycode/GBS/26/396-r http://codes.lp.findlaw.com/nycode/GBS/26/396-r In general most of the commenters here a
by jellicle 14y ago
NY price gouging law:
http://codes.lp.findlaw.com/nycode/GBS/26/396-r http://codes.lp.findlaw.com/nycode/GBS/26/396-r
In general most of the commenters here are not understanding that supply of these goods is constrained. Currently X amount of bottled water is reaching the city, and 100% of it will be sold, at any price. Currently X amount of cars for hire can transport people over the bridges, and no more can fit - the bridges have a fixed capacity. Commenters are thus making false economic arguments because they don't understand the economics, don't understand the situation, or both. Quintupling the price of bottled water and baby formula does not magically make more bottled water or baby formula appear in the city. It just takes a lot of money out of your pocket and puts it in someone else's. That's all, the only effect.
- marcamillion 14y agoExcept that as far as I understand it, in this case, doubling the price does increase the supply. i.e. by charging $99 for a $49 ride, provides a strong incentive for drivers in nearby cities to leave their current market and go to NYC. So that DOES help the situation. I am not sure if this is what you were arguing, but I thought I would provide some clarity :)
- jellicle 14y agoNew York City's streets and bridges are FULL. If the driver from another city comes to NYC, an NYC driver is no longer able to enter the city. No additional supply is created. I'm not sure why this is such a difficult concept to grasp.