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genericresponse | 9 months ago

The key difference in the markets is that it takes a very long time to build more apartments and houses, especially in France. There also isn't an option to not have housing. (Low elasticity) That keeps the short term supply effectively static. Same amount of supply, increase in money spent, inflation.

In a market like solar, there is production of more solar systems. There are also multiple readily available substitutes. (e.g. on-grid power) The effect of the subsidy should drive increased volume from manufacturers, keeping net price stable.

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