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The economy is more dynamic than that. Sure, there will be short-term effects as the policy is rolled out, but new producers will enter the market to meet the i
by timClicks 11y ago
The economy is more dynamic than that. Sure, there will be short-term effects as the policy is rolled out, but new producers will enter the market to meet the increase the quantity demanded in the medium term.
Also for pure commodities, producers are all price-takers. That means that price doesn't necessarily get driven upwards.