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To: Skeeter Bug who wrote (205306)5/30/2009 1:16:48 PM
From: Steve_CRead Replies (1) | Respond to of 306849
 
Skeeter, Skeeter, what happens to price also depends upon the suppliers supply curve. If the receiver of the capital grant is a marginal consumer, meaning he has the lowest demand price for the capital in question, then it's entirely possible for the market price of the capital to decrease.

That's the kind of thing governments consider all the time when they decide to create a market. Don't BS me about your economic education.

The point here is for Jimmy is to say what will happen to the price of fuel cells as a result of the tax break - as it is he who says it is "a fact" that prices always go up with tax breaks.