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http://en.wikipedia.org/wiki/Supply_and_demand Kristian Erik Hermansen wrote: > 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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