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Originally posted by lord of the mark
that the supply curve is flat
that the supply curve is flat
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Why the hell would you assume that?12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio Regum -
A lowered demand curve simply intersects the supply curve at a lower price and a lower quantity.Originally posted by Kidicious
Unbelievable! This is what I've been saying except that the producers with the higher average costs will not sell their farms but wait for demand to increase.
The marginal suppliers stop supplying. So where does this add up to an increase in the price?12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Originally posted by lord of the mark
Kids analysis is correct, but starts from an absurd assumption.
It doesn't matter that the producers have different average costs, so there is nothing wrong with the assumption. It works. I was just trying to be simple.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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What the **** are you talking about?
For ****'s sake, look at the diagram at the top of the page.
We start at D2. We stop eating meat. We move to D1. Where does your price increase come in?12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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As LotM has pointed out short run loses are normal business in agriculture. You don't just sell your farm because you don't earn as much money or even lose money. In fact, you probably have insurance. The price will increase when demand increases again, probably do to population increase.Originally posted by KrazyHorse
A lowered demand curve simply intersects the supply curve at a lower price and a lower quantity.
The marginal suppliers stop supplying. So where does this add up to an increase in the price?I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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STFU idiot!Originally posted by KrazyHorse
What the **** are you talking about?
For ****'s sake, look at the diagram at the top of the page.
We start at D2. We stop eating meat. We move to D1. Where does your price increase come in?I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Who the **** are you, Malthus?Originally posted by Kidicious
As LotM has pointed out short run loses are normal business in agriculture. You don't just sell your farm because you don't earn as much money or even lose money. In fact, you probably have insurance. The price will increase when demand increases again, probably do to population increase.
You're a ****ing muppet.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Oh, and could you explain to me what the sale (or not) of individuals' farms to other entities has to do with this, you numbskull?12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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KIDDDIIIEEEE, I missed you. You brighten my days.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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"At some hypothetical point in the future, the supply curve will be shifted because more people will be around eating food. Therefore, any shift in the demand curve is meaningless."
12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Read the ****ing thread! I'm not going to cater to you.Originally posted by KrazyHorse
Who the **** are you, Malthus?
You're a ****ing muppet.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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I specifically said that the supply curve would not shift. Therefore the price would return to equilibrium.Originally posted by KrazyHorse
"At some hypothetical point in the future, the supply curve will be shifted because more people will be around eating food. Therefore, any shift in the demand curve is meaningless."
Wow! You are soooo incredibly stupid.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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I didnt, it just seemed implicit in what Kid said. Now its less clear if thats what he meant.Originally posted by KrazyHorse
Why the hell would you assume that?"A person cannot approach the divine by reaching beyond the human. To become human, is what this individual person, has been created for.” Martin BuberComment
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it matters immensely, its what determines the elasticity of supply.Originally posted by Kidicious
It doesn't matter that the producers have different average costs, so there is nothing wrong with the assumption. It works. I was just trying to be simple."A person cannot approach the divine by reaching beyond the human. To become human, is what this individual person, has been created for.” Martin BuberComment
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The long run price is determined by the average cost + normal profit. Of course most producers will make greater than normal profit because they have more productive land, lower taxes, cheaper labor whatever.Originally posted by lord of the mark
I didnt, it just seemed implicit in what Kid said. Now its less clear if thats what he meant.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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