sophiaw1926 on Nostr: Elasticity is not the same for all goods, but it has been summed together to be -4 ...

Elasticity is not the same for all goods, but it has been summed together to be -4 and marginal costs for businesses are different, so I’m confused how they can say without a doubt the price increase is 0.25 in the formula. The yale professor helping trump knows this. Since he would have been teaching students who are now probs execs at these companies and are in charge of pricing, he knows what’s coming next. Plus, if he had been helping students understand the importance of supply chain and vertical integration - where are the factories to meet this demand today. Being a retail girl, I saw it first hand on the shopfloor, price goes up, quantity goes down. Feels like it is on the backfoot.