Travel around the World, overall, is above 2007 levels. Japan's going gangbusters thanks to the strong Yen. Latin America's the New World for commodity extraction. Domestic flying is doing well.... Meanwhile we're experimenting with blood extraction from Turnips.
Imagine if Wallmart announced a 50% price increase, on lowered inventory and store locations, and bragged of increasing revenues by 15% for providing fewer services ... oh' you want a bag with that? We'll need to collect a fee ....
What Alpha missed in his Econ 101, is what they covered in the third week:
Originally Posted by Definition of 'Substitution Effect'
The idea that as prices rise (or incomes decrease) consumers will replace more expensive items with less costly alternatives. ...
Although beneficial to some (i.e. discount retailers), in general, the substitution effect is very negative in nature, as it limits choice. This is true not only for products, but also for services. Examples of the substitution effect in action can sometimes be observed over the winter holiday season, where, in lean economic times, discount retailers often hold up well.