• SwingingTheLamp@midwest.social
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    11 months ago

    Hmm, rapid price increases are consistent with inelastic demand, whereby sales remain high even in the face of rising prices. Why wouldn’t car manufacturers raise prices, if it doesn’t affect sales numbers? It’d be breach of fiduciary duty to the shareholders to do otherwise!

    What could cause inelastic demand for cars? Making them basically necessary for most Americans, perhaps.