Yeah, but that holds as much water as my argument in macro 100 about gas being elastic because of how many people scoff at the shell price and look for a sunoco. I did it when I drove every day (in a city with a high density of gas stations), and I will now take other forms of transportation if gas is too expensive, but that’s not common behavior, nor is it normally logical (saving five cents per gallon, driving an extra five miles, and wasting twenty minutes is not a true savings for most people).
It’s technically true, but in an academically idealized market, it wouldn’t be.
Yeah, but that holds as much water as my argument in macro 100 about gas being elastic because of how many people scoff at the shell price and look for a sunoco. I did it when I drove every day (in a city with a high density of gas stations), and I will now take other forms of transportation if gas is too expensive, but that’s not common behavior, nor is it normally logical (saving five cents per gallon, driving an extra five miles, and wasting twenty minutes is not a true savings for most people).
It’s technically true, but in an academically idealized market, it wouldn’t be.