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<blockquote data-quote="senal neveyi" data-source="post: 27612896" data-attributes="member: 570756"><p>Do I need to explain this simple fact?</p><p>Increased production cost > increased price of goods > reduced demand for goods with high elasticity > reduced production >reduced profits/ increased losses for businesses> reduced incentive for businesses/investors </p><p>Increased prices> reduced buying power of the public> reduced demand for goods/services with high elasticity > businesses fall > unemployment </p><p></p><p>So the whole market shrinks worsening the the crisis.</p><hr /><p></p><p>The government does not subsidize fuel. There is a tax in excess of 100 for petrol. In large countries like India/Pakistan cost of inland transportation is also added to the price.</p><p>------ <span style="font-size: 10px">Post added on [DATETIME="UT"]1650390110[/DATETIME]</span></p></blockquote><p></p>
[QUOTE="senal neveyi, post: 27612896, member: 570756"] Do I need to explain this simple fact? Increased production cost > increased price of goods > reduced demand for goods with high elasticity > reduced production >reduced profits/ increased losses for businesses> reduced incentive for businesses/investors Increased prices> reduced buying power of the public> reduced demand for goods/services with high elasticity > businesses fall > unemployment So the whole market shrinks worsening the the crisis. [HR][/HR] The government does not subsidize fuel. There is a tax in excess of 100 for petrol. In large countries like India/Pakistan cost of inland transportation is also added to the price. ------ [SIZE=2]Post added on [DATETIME="UT"]1650390110[/DATETIME][/SIZE] [/QUOTE]
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