In the old days of the Soviet Union, ideology dictated that the prices of consumer goods should decline over time. Hence, the Soviet planners consistently set the prices of goods like bread and meat much below the cost of the materials used to produce them. They did not, however, subsidise the prices of the goods and materials used by producers. Soviet fur breeders were supposed to purchase animal products at high prices to feed their mink and sable, and bread and meat at low prices to feed their families. If these producers responded to incentives, how do you think they adjusted their purchases of grain, animal products, bread and meat?

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The Answer of In the old days of the Soviet Union, ideology dictated that the prices of consumer goods should decline over time. Hence, the Soviet planners consistently set the prices of goods like bread and meat much below the cost of the materials used to produce them. They did not, however, subsidise the prices of the goods and materials used by producers. Soviet fur breeders were supposed to purchase animal products at high prices to feed their mink and sable, and bread and meat at low prices to feed their families. If these producers responded to incentives, how do you think they adjusted their purchases of grain, animal products, bread and meat?

In the Old Days of the Soviet Union, Ideology Dictated