> Supply and demand presumes that I would have wanted something else than Fanta
That's not how S&D works. S&D is in-play even if Fanta had a monopoly. Even if the prices were set by the government. Governments have tried every scheme imaginable to repeal the law of S&D, but they never work.
BTW, I gave up all soda about 15 years ago. It took about a year to finally stop craving it. I no longer have any desire for it.
Besides the health issues, it has saved me a ton of money in aggregate.
> A firm with market power chooses a point on the demand curve that it faces. It sets a price as a markup over marginal cost and then produces enough to meet demand at that price. A firm with market power does not take the price as given and then determine a quantity to supply. In fact—strictly speaking—there is no such thing as a supply curve when a firm has market power.
Soda for me is a guilty pleasure, like a good barbecue, or a bottle of red wine. But I appreciate the heads-up!
That's not how S&D works. S&D is in-play even if Fanta had a monopoly. Even if the prices were set by the government. Governments have tried every scheme imaginable to repeal the law of S&D, but they never work.
BTW, I gave up all soda about 15 years ago. It took about a year to finally stop craving it. I no longer have any desire for it.
Besides the health issues, it has saved me a ton of money in aggregate.