When a supply curve is relatively flat (elastic), there is little producer surplus, so producers won't lobby hard for or get excited about a price/tax change; yet because the demand curve's shape is independent, consumers can capture huge gains from the same change—explaining why innovations are often small producer-side tweaks that yield large consumer value.

causalpending

Speaker

Garrett Jones

Evidence Quote

if the supply curves really flat then what that means is there's not that much what we call producer surplus out there in the market

Source

Garett Jones on Macro and Twitter 02/22/2010EconTalk
Created: 6/17/2026, 10:31:36 AM

My Notes

Loading notes...