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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Jim McMannis who wrote (205350)5/30/2009 10:37:36 PM
From: Steve_CRead Replies (1) of 306849
 
I said a tax break to PRODUCE fuel cells. But, assuming your scenario of a tax break on the PURCHASE of fuel cells themselves, think of a supplier with a very steep supply curve, as one might expect in a capital intensive industry. Now assuming the supplier is also a monopolist in pricing then marginal buyers entering the market could result in the market clearing price falling. All, I'm trying to point out here is that you can't take it as FACT that tax breaks ALWAYS cause the market price of a good to rise.
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