Study Guide to Man, Economy, and State with Power and Market

132 Study Guide to Man, Economy, and State with Power and Market
and then charges very low unit prices, show that this
type of arrangement is not a mere theoretical curiosity.
3. On page 660 and pp. 689–90, Rothbard argues that
demand is always elastic above the free market price.
However, a mainstream economist would respond
that Rothbard is conflating the market demand curve
with the individual firm’s “perceived” demand curve;
the market demand for wheat may be inelastic at the
“competitive” price, even though individual wheat
farmers perceive perfectly elastic demand curves. (Of
course Rothbard criticizes such a view elsewhere in
the chapter.)