Re: Turbo questions

"Wayne Niddery [TeamB]" wrote:
I.P. Nichols wrote:

2) "...dozens of market research summaries that basically showed the
pro and non-pro customers having different needs and showing that a
sizeable portion of these customers pricing behavior was closer to
being perfectly elastic (using made up numbers this would be
something like charging as little as $5 for Express could cut Express
adoption by half)."

If I'm reading this right then you have your conclusion backwards. If this
market is considered to be "perfectly elastic", then it means the price
can very by quite a *large* percentage *without* seriously impacting
adoption. IOW people are interested and want it at *any* reasonable price.

Naw, it looks like you are the one that's got it backwards. ;-)

Did you fail to notice I was actually quoting from the article in which,
when he uses the term "perfectly elastic", it is hyperlinked to this
reference.

http://en.wikipedia.org/wiki/Price_elasticity_of_demand
"When the price elasticity of demand for a good is *perfectly elastic* (Ed =
?), any increase in the price, no matter how small, will cause demand for
the good to drop to zero. Hence, when the price is raised, the total revenue
of producers falls to zero. The demand curve is a horizontal straght line. A
ten-dollar banknote is an example of a perfectly elastic good; nobody would
pay $10.01, yet everyone will pay $9.99 for it."

"When the price elasticity of demand for a good is *perfectly inelastic* (Ed
= 0), changes in the price do not affect the quantity demanded for the good.
The demand curve is a vertical straight line; this violates the law of
demand."


.

Relevant Pages

  • Re: Tax refund checks - marked as OT
    ... On "Marketplace," a program that airs on my local public radio station while I'm sitting in the car waiting for my son to finish his Tuesday trumpet lessons, had a few experts on today who said the price of gasoline has absolutely nothing to do with supply and demand. ... The futures markets got a whiff of decrease in demand, and the price of a barrel dropped over 3% today. ... If I understand the situation correctly, the record profits of companies in this industry are due to speculation and not supply and demand - the cost of making the stuff hasn't gone up nearly as much as the selling price, so the people who sell make more money. ...
    (rec.music.classical.guitar)
  • Re: Tax refund checks
    ... Demand ... will increase with the initial price reduction so prices will ... Unless I misunderstand this, the futures markets aren't gasoline, ... profits of companies in this industry are due to speculation and not ...
    (rec.music.classical.guitar)
  • Re: DON TIBERONE- YOU SHOULD HAVE LISTENED TO ME
    ... Well, duh, except price can't fall below the cost of production for long ... Actually, so far, it has been pretty inelastic considering demand continues ... MORE oil than their "target", and the discrepancy was the GREATEST ...
    (misc.invest.stocks)
  • Re: Classical Economists Reject Theory Of Supply And Demand (was Re: Is information the fourth facto
    ... IMO it is rather that supply and demand do determine price, ... With the rise or fall of price, profits are ... > depart from the particular employment in which the variation ...
    (sci.econ)
  • Re: 2008 Dining Plan Changes
    ... its best interest and because Disney invests so much in knowing its ... The supply and demand curves have crossed at what is called the equilibrium point, which means the price is right for everyone. ... Moving the demand curve is done by adjusting the price, or, really, by adjusting the "value proposition". ...
    (rec.arts.disney.parks)