• rottingleaf@lemmy.zip
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    1 year ago

    Demand elasticity is a thing. Demand won’t shrink by the same ratio prices rose after removing subsidies, but it will shrink.

    Response to that I can’t predict, but there are places in the planet where prices are lower because of the general poverty of population and the need to still sell it, and places where prices are even higher, but most of the population can’t afford fuel, I can’t name.

    EDIT: This was incomprehensible, sorry. I meant that in the long term prices for the consumer are going to become closer to what they were with subsidies, likely, thus the real prices - lower. The question is how bad it gets before that happens.