Quote:
Originally Posted by joeydb
Uhhh - taking this nice and slow now:
Increasing demand raises prices, even with constant supply.
Decreasing demand lowers prices, even with constant supply.
Increasing supply lowers prices, even with constant demand.
Decreasing supply raises prices, even with constant demand.
Soooo, increasing demand and decreasing supply during the same time period will cause a largeincrease in prices.
And yes - the laws of supply and demand always work, just like the laws of gravity.
Re-read that again until it makes sense to you.
|
Except we don't live in an unfettered, true free-market marketplace.
__________________
"Have the clean racing people run any ads explaining that giving a horse a Starbucks and a chocolate poppyseed muffin for breakfast would likely result in a ten year suspension for the trainer?" - Dr. Andrew Roberts
|