March 13, 2005
The Observer and Economics.
The Observer often seems to have only a passing relationship with the basics of economics, as evidenced by this sub-editor’s header to an article:
Runaway demand around the globe puts more money into the hands of traffickers despite action to curb supply
Err, demand rising, supply being curbed....that should read because of, not despite.
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Surely that depends on the associated elasticities? Rising demand and reduced supply *can* mean higher total revenues, but can also mean lower total revenues despite higher prices.
Posted by: john b | Mar 14, 2005 11:28:12 AM