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OK, not to start anything here :-) .. BUT!!! Let's go through your logic again!!! You say -> "Supply does not affect demand" ... and that "If demand remains constant and supply increases, then prices come down" ... and that "Lower prices increase demand" I don't want to get into the a formal logic proof resulting in Q.E.D, but here goes the simplified version... Assume that demand remains constant and supply increases. By your own statement, prices come down. In such a scenario, again by your own statement, this will increase demand, due to lower prices. This contradicts your original statement that supply does not affect demand, since we began with the assumption that supply increases. Thus, there must be some correlation between supply affecting demand! Don't make me break out prolog!!!! Just kidding :-P On 9/27/07, Jerry Feldman <[hidden email]> wrote: > On Thu, 27 Sep 2007 10:09:19 -0700 > "Kristian Erik Hermansen" <[hidden email]> wrote: > > > On 9/27/07, Jerry Feldman <[hidden email]> wrote: > > > No. Supply does not affect demand. If demand remains constant and > > > supply increases, then prices should come down. But, as David mentioned > > > > You don't think lower prices would encourage new entrants into a > > market, despite the same existing demand for prices at the normal > > level? > > Price affects demand. Lower the price, demand generally increases. > (Economics 101). What I said was that supply does not affect demand. > However lowering the price also tends to reduce the supply. > -- > Jerry Feldman <[hidden email]> > Boston Linux and Unix user group > http://www.blu.org PGP key id:C5061EA9 > PGP Key fingerprint:053C 73EC 3AC1 5C44 3E14 9245 FB00 3ED5 C506 1EA9 > > _______________________________________________ > Discuss mailing list > [hidden email] > http://lists.blu.org/mailman/listinfo/discuss > >
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