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reddit's users are creating the content for the other users, so a drop in users means less or worse content. Doubt you could model easily with a demand chart.

It can be rational and still be BS.

It's only BS because you have to pay more.

Yes, exactly. It's only BS because you have to pay more, I don't think they made any other changes.

Those graphs rely on knowing the price elasticity of demand, which is easy to get for commodities like wheat and next to impossible to get for differentiated products, at least without testing various prices on statistically identical cohorts, which is technically difficult and a PR nightmare.

The short run elasticity might also be very different from the longer run elasticity.

Eg consumer put up with the increased price for a while, but will switch away over time.

Indeed, and then second order effects where elasticity might change as the platform gains or loses users.