format_quote Originally Posted by
MiracleSurvivor
We have seen a fall in human population in some countries, and in developed countries they have fewer children. If there are less humans, will cost of living decrease?
Trade (or Capitalism if you want to get fancy) is based on supply and demand. While fewer people means fewer buyers/consumers (thus lower prices), fewer people also means fewer seller/producers (less competition). So in the end it doesn't have any effect at all.
There are two exceptions though:
- Mass production, the more products are produced the cheaper every unit gets. This is mainly because of the massive upfront cost of production (think the factory where cars are made).
- Land price, since land is finite and can't be created. It could mean that land becomes cheaper as fewer people exist on the planet.