Quote:
Originally Posted by Barry-xlovecam
Economics 105:
Products who's price is too high, or products that exhibit scarcity, for median markets; trigger innovation of either lower priced replacements or more readily available substitutes.
On the other hand: High prices can extend life of inefficient markets -- like a petro economy that is past its "freshness date".
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those 2 statements are contradictory... did you mean "low prices" in the 2nd statement? and I'm assuming this is supposed to be an argument FOR higher oil prices?
if this argument is valid, why would high prices on newly discovered drugs be undesirable? don't high drug prices lead to innovation just like you outlined above?
what do you find inefficient about petro economy anyway?