Poor in India Starve as Politicians Steal $14.5 Billion of Food

Re:Poor in India Starve as Politicians Steal $14.5 Billion o... by intended on Wednesday August 29, 2012 @09:25AM (#4448372)

Hmm.

The subsidy/pds is supposed to shift the price of goods down, so corruption does affect the intended price of goods by making them unavailable at the subsidized rate.

That's why I chose the supply curve. Correct me if I got it wrong.

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Re:Poor in India Starve as Politicians Steal $14.5 Billion o... by anovikov on Wednesday August 29, 2012 @11:40AM (#4449125)

There is no relation to the supply curve. Because there is no change in the price at which the product is purchased from producers.

Demand shifts of course (the overall price of the product drops because the stuff that wasn't supposed to make it to the market gets there, but free stuff disappears -> structure changes).

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Re:Poor in India Starve as Politicians Steal $14.5 Billion o... by intended on Wednesday August 29, 2012 @02:47PM (#4450362)

Ah yes, got it, you are correct. Thank you.

The supply curve is the amount of goods produced at x price.

Since x isn't being changed here for sellers, it doesn't move.

The demand curve does move because of the distorting effects of the subsidy/PDS, and then again because of corruption.

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