Re: Woohooo! Dell + Linux
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On 03/30/07 10:35, John Hasler wrote:
> Celejar writes:
>> Doesn't basic economics dictate that given competition, the equilibrium
>> price is determined by both supply and demand? Even if I'm willing to pay
>> a great deal, if the cost to produce the item is low, competition should
>> drive down the price.
>
> People who buy cheap white bread buy cheap white bread. They just want
> something to stuff in the kids' mouths. Price is almost all that matters.
> People who buy whole wheat bread are picky. They want bread that they
> believe fits their notions about nutrition and are influenced by what their
> friends say and by the labeling and advertising.
Or, besides being better for you, it *tastes better* than that gummy
white stuff. Oroweat 100% Whole Wheat is my family's standard bread.
> Price is far from their
> sole criteria: some will deliberately avoid the cheapest brand because they
> believe that it must be inferior.
We buy the cheapest *whole* wheat bread at the local store that
doesn't taste like crumbly cardboard.
> Some will buy the most expensive brand
> because "you get what you pay for" or just so they can brag.
>
>> Are you implying that the market is a monopoly or oligarchy?
>
> No. The generic white bread market and the whole-wheat bread market are
> two different markets with different elasticities. This results in
> different equilibrium prices even with identical costs (which they probably
> aren't). This is basic economics. Did you not study it at university?
Look at the ingredients list of white bread and whole wheat bread.
- --
Ron Johnson, Jr.
Jefferson LA USA
Give a man a fish, and he eats for a day.
Hit him with a fish, and he goes away for good!
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