John said: > I think that it is a basic truism that when a service becomes cheaper, > people demand more of it.
There are markets in which this is only weakly true. For example, the launch vehicle market is quite inelastic - price reductions don't lead to an increase in overall demand, because anybody who can afford the satellite can afford a launch at current prices too. (This is why I think space industrialisation plans that rely on radically cheaper launches are a bad idea.) I would imagine that the economics of abortion are similar. > Indeed, if provoding the abortions for free isn't providing the > service to those who would not otherwise ordinarily procure the > abortion service, then why else would he offer it for free? So that people use his services rather than those of another doctor offering abortions. So that he raises awareness of his business. So that he will in future get a bigger slice of the pie, which is economically worthwhile for him whether or not the pie is growing. Rich GCU Invisible Hand _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
