Reddit refuge

  • 29 Posts
  • 2.51K Comments
Joined 3 years ago
cake
Cake day: June 16th, 2023

help-circle
  • There is a concept in economics called price elasticity, which is how the market adjusts to changes in supply and demand. If there are more alternatives for the product or the product is a luxury, the price is usually considered “elastic” as people will stop using the good over paying more for it.

    Oil is price inelastic. For a lot of equipment, there isn’t an immediate substitute for oil and people need oil to do a lot of important economic activities. So, if there is a reduction in supply, a lot of people will pay more money to make sure they get their oil, which drives up prices far more than the lack of supply would normally suggest.

    That being said, goods are usually more price elastic in the long run. For instance, people might choose an electric car right now over a gas powered car because electric cars now are a lot cheaper in comparison for total use costs.










  • A few reasons.

    First, the alcohol industry has been a lot more sensitive to being perceived as selling to kids than the tobacco industry was. Because of it, there was never the push to ban advertising and conduct a mass media effort to control teen drinking as there was teen smoking.

    Second, people still remember prohibition in the USA and how it was a failure. So, you’ve got a lot of people worried about a slippery slope in comparison to tobacco.

    Third, the alcohol industry is far better at lobbying around specific items that would actually prevent consumption. For instance, alcoholic beverages don’t need to show nutritional information. It will bend in a way that keeps access open.