(October 7, 2016 at 12:45 pm)Tiberius Wrote: There might be a slight increase, but it wouldn't be as much as the increase in wages.
Competition keeps costs down as well.
As far as I understand, this is essentially correct. For commodities that are plentiful (think milk, gas, etc.) the price is not driven by demand (which is constant and large) but by cost of attaining the commodity for resale (milking the cow or getting the fuel out of the ground or whatnot). Supply and demand only gets you so far when there is a large number of interchangeable suppliers of fungible resources.
Suppose you give everyone in town an extra $10,000 dollars. Will the cost of milk shoot up to $8 per gallon? Hell no.
How will we know, when the morning comes, we are still human? - 2D
Don't worry, my friend. If this be the end, then so shall it be.
Don't worry, my friend. If this be the end, then so shall it be.
