Quote:
Originally Posted by White Out 403
The shocking naivety of people and the "invisible hand" never ceases to floor me. There's like 3 grocers in all of Canada.
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This has nothing to do with 2% merchant fees. This is more like telecom, where you have an oligopoly that can collude to fix prices, especially in industries with a high barrier to entry, or artificial barriers to competition. They don't need any credit card rule changes to squeeze 2% more out of everybody, they're just fine doing it on their own.
Quote:
Originally Posted by Shazam
There is this economic concept called elasticity. I assert that a 2% upward movement in prices will do nothing to dampen demand for any good or service.
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Yup, and elasticity has a time component. Asserting that a 2% reduction in national spending power won't affect demand is a pretty hot take however.