New and Improved Tolerance from the Liberal Socialist Left

[therealUT]

The slope of the demand curve (everyone has a different price point) does indicate that in theory the price necessarily comes down. If the price doesn't come down, it means X (stupidly) wasn't maximizing profit, but for all intents and purposes, we should expect them to maximize profit.

X maximizes profit based on the price 100 people who value the widget the most will buy it for. The remaining 900 people who demand it are waiting for a lower price (people who buy the iPhone from AT&T vs those who wait to get it on T-Mobile). They may not be getting market equilibrium pricing, but most certainly the price is coming down.

Your example reminds me of Tickle Me Elmo. This is the way that usually works: the manufacturer contractually obligates its competing vendors to charge below a certain price point. They could have initially charged a lot more, but the buzz that is created makes more money in the long run for the manufacturer...the competing vendors however would have charged obscene amounts when the supply was scarce, had they been allowed to.

Agree with the supply and demand curves, however, there are two points to make with regard to these curves.

1. These curves are built with the ideal assumption that all actors in the situation are rational and well-informed. We know this assumption does not hold. So, supply and demand curves never fully explain prices.

2. We have to understand 'price' as not merely nominal dollar amounts. Prices include the costs to the consumer of traveling further, of making a left-hand turn as opposed to a right-hand turn, etc.

I'm not sure exactly how these points play into the healthcare debate, but I imagine they play a role.

 

[n_huffhines]

Once again, you are clueless. There was no HD nor DVD during all the time, there was no such thing. We had one provider but that one provider has provided a good channel lineup for several years. Wow with one provider we had HBO, Cinemax, Showtime , the Movie Channel and even got to watch sports on ESPN, imagine that

For God's sakes, I know there was no HD or DVR. That was exactly my point. This is futile.

How I picture Gramps reading my posts:

 

[Velo Vol]

I'm not sure exactly how these points play into the healthcare debate, but I imagine they play a role.

Trying to apply market economics to American healthcare is an exercise in futility. Neither demand nor supply is market driven.

 

[Velo Vol]

Yea me

Someone has to be.

 

[Gramps]

For God's sakes, I know there was no HD or DVR. That was exactly my point. This is futile.

That was not your point.Geez you surely know being a tutor and economic expert that all one has to do is scroll back in the thread to see what was actually said..

 

[Gannon Goodson]

Trying to apply market economics to American healthcare is an exercise in futility. Neither demand nor supply is market driven.

False.

 

[volprof]

The mythical unicorn that is the free market worked so well in the 1800s, maybe we should give it a try again.

 

[Gannon Goodson]

The mythical unicorn that is the free market worked so well in the 1800s, maybe we should give it a try again.

There's nothing mythical about the largest growth this country ever experienced happened between the 1870s and 1910s, right before the government f***** it up through inflation.

You should probably stick to sociology or whatever other worthless field you're in and leave economics to those who know what the hell is going on.

 

[Gramps]

There's nothing mythical about the largest growth this country ever experienced happened between the 1870s and 1910s, right before the government f***** it up through inflation.

You should probably stick to sociology or whatever other worthless field you're in and leave economics to those who know what the hell is going on.

That period brought us the rapid expansion of big business, large scale agriculture, the rise of national labor unions and industrial conflict.

 

[82_VOL_83]

There's nothing mythical about the largest growth this country ever experienced happened between the 1870s and 1910s, right before the government f***** it up through inflation.

You should probably stick to sociology or whatever other worthless field you're in and leave economics to those who know what the hell is going on.

Easy GG, he's just an English teacher trying to be relevant.