Originally Posted by
Koyote
the demand for toilet paper is highly inelastic, the demand for expensive luxury goods like high-end bikes is generally elastic. .
yeah, I know nothing about formal economics studies, but it did seem odd to me that a necessity would be "elastic:" when the need obviously was constant ... and luxury items, obviously, have changing demand because of changes in the economy and where rich people chose to invest.
I didn't want to get into it, because starting from "ignorant" there weren't a lot of better places I might get to.
The idea that inelastic items are priced differently (whichever term is correct--I certainly trust you on this one) is common snese ... anyone who has bought anything can see that.
While scientists get it wrong ... i know they get it right too. And I expect you know the terminology in the field in which you specialize.
Still, though ... if you economists are so smart, why have we been doing "Boom and Bust" and bubbles for the past 250 years?
You know what I will let trickle down on those "supply-side" economists ....
TY for the reasonable reply.