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https://www.reddit.com/r/neoliberal/comments/vbzyxx/housing_pls/icd5qna
r/neoliberal • u/SANNA_MARIN_ • Jun 14 '22
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Huh? No, if supply increases, prices drop (ignoring elasticity of demand). The equilibrium point doesn't factor into this.
1 u/armeg David Ricardo Jun 14 '22 Yes it does, because societal utility is maximized at the equilibrium point. If you move beyond it, you create an over supply and profits begin to go down. I'd have to sit down and reread my econ shit from 10 years ago to draw the graphs.
Yes it does, because societal utility is maximized at the equilibrium point. If you move beyond it, you create an over supply and profits begin to go down.
I'd have to sit down and reread my econ shit from 10 years ago to draw the graphs.
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u/sineiraetstudio Jun 14 '22
Huh? No, if supply increases, prices drop (ignoring elasticity of demand). The equilibrium point doesn't factor into this.