Quote:
Originally Posted by iggy_oi
People really like to rag on supply management because they have been lead to believe that getting rid of it is going to magically lower the prices they pay at the till. Yet their arguments for why they believe that are generally theoretical things like supply and demand, which are only about as universally proven as trickle down economics.
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Does nobody here actually understand microeconomics? Just because people don't understand something, doesn't mean it's a "fairy tale".
When it comes to supply and demand, there's elastic demand and inelastic demand. Milk is inelastic demand, which (put simply) means that people who drink milk are going to drink milk regardless of the price (within reason), so iggy_oi is correct that the farmers dumping milk shouldn't have much of an effect on prices, but it's not because supply and demand is a fairy tale of evil capitalism.