9 ms·
What? Increased demand does not generally lead to lower prices.
by JacksCracked 10y ago
What? Increased demand does not generally lead to lower prices.
- dragonwriter 10y agoIncreasing the quantity demanded at a lower price sufficiently can reduce the optimal, profit maximizing price for the seller. Your thinking of usual asymptotic behavior of idealized competitive markets, which while it has some relation to the concerns of a single seller in a real market facing real changes in ranges where the factors which dominate in the asymptotic case aren't the only important factors, it's not a perfect guide for them.