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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (760756)	1/1/2014 5:32:42 PM
From: i-node	1 Recommendation Recommended By FJB Respond to of 1574312

>> Not perfectly, but small price increases are readily absorbed without decreasing demand. Talk about a particularly stupid response. Small price increases will have an effect on demand just as large ones will. They just won't be as large. This is fairly basic arithmetic and I'm surprised you're having trouble with it. Demand is NOT inelastic in the fast food business. "We reviewed 160 studies on the price elasticity of demand for major food categories to assess mean elasticities by food category and variations in estimates by study design. Price elasticities for foods and nonalcoholic beverages ranged from 0.27 to 0.81 (absolute values), with food away from home, soft drinks, juice, and meats being most responsive to price changes (0.7–0.8). As an example, a 10% increase in soft drink prices should reduce consumption by 8% to 10%." So, you get that, right?

To: combjelly who wrote (760756)	1/1/2014 6:56:07 PM
From: TimF	Read Replies (1) \| Respond to of 1574312

The aid allows Walmart and others to pay so little. Many of their employees, even many of their entry level employees, don't receive aid. That and the fact that and the fact that they can get 38 applications of each new position ( Message 29302340 ) make your claim seem rather dubious as a significant point, at least for Walmart. Everybody else will have their labor costs go up. Yes if it impacts their competitors than the extent that employers can afford to pay more increases. But you would still have many employers (esp. smaller ones, rather than huge businesses like Walmart) that could not afford to make the transition. And those who can are incentivized to reduce employment (except to the extent that they are getting extra business from those who bow out, but total employment is likely to be reduced). Being able to afford to pay more really isn't the issue. It only provides the absolute limit that the companies can't go beyond, but what matters more is what incentives are created.