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To: Tublecane

It’s not more or less. Charging extra doesn’t mean more people get water, it just means DIFFERENT people get water, and you make a bunch more money on it. The overall math on how many live or die stays the same, the gouger is just making money picking and choosing.


27 posted on 11/02/2012 1:39:22 PM PDT by discostu (Not a part of anyone's well oiled machine.)
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To: discostu

“Charging extra doesn’t mean more people get water”

Yes, it does. Price has an effect on demand, and it discourages people from buying more than they need. Are you not aware of the rationing function of price? How long has it been since you cracked an economics book?

“it just means DIFFERENT people get water”

Not just, but yes, they are different. Namely, now the people who more highly value water will tend to get it. Also more people overall will get it, because below market prices ensure the market will not clear where supply meets demand, but rather demand will suffer and remain unfulfilled when supply runs out.

“the gouget is just making money picking and choosing”

But his does he make money? What is the mechanism whereby who he chooses bakes him more money under higher prices if more people aren’t buying? Or in other words, what color is the sky in your world?


32 posted on 11/02/2012 2:09:16 PM PDT by Tublecane
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To: discostu

“Charging extra doesn’t mean more people get water”

Yes, it does. Price has an effect on demand, and it discourages people from buying more than they need. Are you not aware of the rationing function of price? How long has it been since you cracked an economics book?

“it just means DIFFERENT people get water”

Not just, but yes, they are different. Namely, now the people who more highly value water will tend to get it. Also more people overall will get it, because below market prices ensure the market will not clear where supply meets demand, but rather demand will suffer and remain unfulfilled when supply runs out.

“the gouget is just making money picking and choosing”

But how does he make money? What is the mechanism whereby who he chooses makes him more money under higher prices if more people aren’t buying? Or in other words, what color is the sky in your world?


33 posted on 11/02/2012 2:10:30 PM PDT by Tublecane
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To: discostu

See my #19...


35 posted on 11/02/2012 2:20:43 PM PDT by jonno (Having an opinion is not the same as having the answer...)
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