Re:The Ultimate Guide to Inflation
by LudwigNagasena on Sunday May 09, 2021 @07:21PM
(#27100820)
> The marginal cost for a new subscriber is practically zero, so there should be no price increase caused by a shortage.
Digital goods aren’t priced at marginal cost. By your logic not only an increase in money supply would have no effect on the price of digital goods, but the price of digital goods should be 0 before and after the increase.
Digital goods aren’t priced at marginal cost. By your logic not only an increase in money supply would have no effect on the price of digital goods, but the price of digital goods should be 0 before and after the increase.