Skip to content

Comment on The Mincome Experiment of 1974-79parent

Comments

Its the consequence of assuming no change in supply and assuming that there are other competing goods (e.g., food) which will compete for the marginal dollars for the same population of buyers (and hence that demand is not perfectly inelastic.)

Engel's law (the food example) doesn't really impact it that much because the income elasticity of food is between 0 and 1. By your logic nothing has an income elasticity of demand greater than 1 because of competing with food.

AboutSource Built by g1lg1l

Hackerly is an independent reader for Hacker News, built on the public HN API. Not affiliated with Y Combinator.