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Re: I think the point is (archive)
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Posted by PB on September 05, 2000 at 09:16:13:

In Reply to: I think the point is posted by higher supply + same demand = on September 05, 2000 at 01:17:07:

Squashing the already lifeless dealers will allow lower prices in the long run. In an effort to siphon cometitors' customers a manufacturer will have more room to drop their prices and all manufacturers who wish to stay in the running will have to follow suit.

I guess that would mean "higher supply + lower prices = higher demand." :\


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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