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Non-Tech : Elaine Garzarelli
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To: Dh who wrote (188)1/4/1997 3:32:00 AM
From: Zeev Hed   of 292
 
dh: Of course the price of a car has an effect on the cost of producing an orange, but nowhere did Leontieff in his input/output tables predicts what the change in one commodity's price will have on the price of another commodity, only on its cost. What is important to remember is there is a lot of pricing elasticity in the market due to globalization, and while the cost of energy may increase, the price of other goods does not necessarily follow, unless this commodity is a very large part of the other goods and their is an inelastic pricing structure (such as lack of competition).

Zeev
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