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I think the point is (archive)
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Posted by higher supply + same demand = on September 05, 2000 at 01:17:07:

In Reply to: That has nothing to do with what I said. (EOM) posted by DC from Cape Cod on September 04, 2000 at 22:44:04:

lower prices. Economics 101 isn't it?


Sooner or later there will be a manufacturer willing to reduce prices in order to sell higher volume, possibly to strengthen the brand. Once that happens others will be forced to follow if they want to stay competitive. A cushion that big won't last for long.


The demand and the current price is already established. Removing the intermediary (dealer) and keeping the price the same should not affect the demand. Any issues of competition v.s price v.s. supply have already worked themselves out in establishing the current level of demand.

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