Slave Redemption Works Best When the Supply Curve for Slaves Is Perfectly Inelastic
In the initial equilibrium at point a, potential slave owners purchase 1,000 slaves at a price of $15. The increase in demand from the redeemers pushes up the price of slaves to $50 at point b. At the higher price, the quantity of slaves demanded by potential slave owners is just 200, so the redeemers are able to free 800 slaves. Since there is no increase in the quantity supplied, every slave purchased is a slave freed.
In the initial equilibrium at point a, potential slave owners purchase 1,000 slaves at a price of $15. The increase in demand from the redeemers pushes up the price of slaves to $50 at point b. At the higher price, the quantity of slaves demanded by potential slave owners is just 200, so the redeemers are able to free 800 slaves. Since there is no increase in the quantity supplied, every slave purchased is a slave freed.