• Milk_Sheikh@lemm.ee
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    5 months ago

    Yes, but once you progress beyond demand elasticity and possibility frontiers, you learn about how externalities and marketing distort the tidy micro/macroeconomic theories.

    “Perfect information” and “rational self interest” are the two biggest inbuilt crutches to economic theory, and capitalism evolves its profit-taking modalities daily. If marketing can convince consumers that an objectively inferior brand is equal or better to the competition, then the price inelasticity raises dramatically