tag:blogger.com,1999:blog-5404820640426099135.post8103746146153118046..comments2023-10-31T00:46:35.316+13:00Comments on Anti-Dismal: Jeanette meet economics .... (updated)Paul Walkerhttp://www.blogger.com/profile/13731003529546075700noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5404820640426099135.post-83449076409795128282009-08-10T21:00:30.382+12:002009-08-10T21:00:30.382+12:00I suspect Jeanette is confused by the tendency of ...I suspect Jeanette is confused by the tendency of electricity companies to increase their prices in times of high demand. This is, of course, because there is a resource limitation (the amount of electricity the companies can produce) and increase demand of a scarce resource pushes up the price.<br /><br />The people most responsible for the resource limitation are, naturally, the Greens who have consistently prevented the construction of coal/oil-fired power stations. <br /><br />As you point out, Jeanette's grasp of economics is somewhat lax, so I don't expect her to appreciate that her crew is responsible for thisMacDoctorhttp://www.macdoctor.co.nznoreply@blogger.comtag:blogger.com,1999:blog-5404820640426099135.post-60363391934818630362009-08-10T20:29:51.926+12:002009-08-10T20:29:51.926+12:00Although you're obviously correct that natural...Although you're obviously correct that natural monopolies may lower prices with increased demand, you're being too charitable to her - she actually said that it was more competitive markets which do this (at least implied it with her shoes and toothpaste example). According to her, increased demand decreases prices <i>except</i> when you have diseconomies of scale - she has it perfectly backwards.TMhttps://www.blogger.com/profile/18414904167369049978noreply@blogger.com