I think by market logic the latter group will eventually perish by the presence of more productive competitors. Today the thought crossed my mind: I can adjust my own preference to favor one over the other.
There are quite a few markets like coffee.
How will changing the starbucks logo to this logo effect demand? Pike Place tastes a little better. They cost the same amount.
I many times disagree. But as employment increased, consumers became more willing and able to buy coffee, increasing demand for both brands. There is also the idea that economists should describe what is rather than what ought to be. The food market at large is mostly analogous. I think economics would be a much better field for it. They cost the same amount. To be clear, both services are very much in demand and supply with respect to economists. Economists largely argue that preferences are exogenous and not to be judged as good or bad. I think by market logic the latter group will eventually perish by the presence of more productive competitors. Being able to pay the higher prices is as seen as a sign of higher status so consumers who can afford it are more willing to pay a higher price for starbucks coffee compared to lower end brands. I drink it for two reasons. Pike Place tastes a little better. First, it tastes good.
Productivity would increase Real income would go up Utility could go, up, down, or stay the same. I many times disagree.
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