On Sun, 17 Sep 2000, Bryan Caplan wrote: > > Where would the supply-side effect > > come from? > > Just because the world supply is fixed, does not mean that one country > can't reduce after-tax prices by cutting taxes. Inelastically supplied > to the world, elastically supplied to individual countries. > Prof. Bryan Caplan [EMAIL PROTECTED] If the product we are talking about is gasoline, it seems to me the oil is refined locally with imported oil. If gasoline itself is imported, then yes, the supply is elastic. But if the gasoline is all refined with Japan, then in the short run, if refineries are running at full capacity, it seems to me the supply of gasoline is inelastic, if not fixed. Fred Foldvary
