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  • Yes, prices will fall

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Thread: Supply & Demand

  1. #51
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    Re: Supply & Demand

    Quote Originally Posted by obvious Child View Post
    Hypothetical:

    If there are a 1,000,000,000 units of product A, all effectively identical and someone adds 1,200,000 more to the market and demand is annually increasing at 3% (so 30,000,000) will that materially reduce prices?

    *Assume no barriers to purchase for all potential buyers.
    Why would a company add over 100% more product to a market without a commensurate increase in demand?
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
    "Fly-over" country voted, and The Donald is now POTUS.

  2. #52
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    Re: Supply & Demand

    Monopolies never produce to demand levels. That's how they maintain their profits - through deadweight loss on the consumer end.

  3. #53
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    Re: Supply & Demand

    I've always wondered why corporations receive special privileges and immunities.

  4. #54
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    Re: Supply & Demand

    Quote Originally Posted by LiberalAvenger View Post
    I've always wondered why corporations receive special privileges and immunities.
    Maybe because they bring jobs to town...and that means taxes.
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
    "Fly-over" country voted, and The Donald is now POTUS.

  5. #55
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    Re: Supply & Demand

    Quote Originally Posted by American View Post
    Maybe because they bring jobs to town...and that means taxes.

    Incredibly obvious, except for the younger generations that haven't spent much time in the work force, or have ever tried to get a business off the ground.

    Jot that one down in the Shock & Awe column.

    Here is a short course from the Libs Fav to help them along in understanding what once was common knowledge and common sense.
    http://www.jfklibrary.org/Asset+Tree...DA}&type=Audio

    John F. Kennedy
    Address at the Economic Club of New York, December 14, 1962
    The final and best means of strengthening demand among consumers and business is to reduce the burden on private income and the deterrents to private initiative which are imposed by our present tax system; and this administration pledged itself last summer to an across-the-board, top-to-bottom cut in personal and corporate income taxes to be enacted and become effective in 1963.

    I am not talking about a "quickie" or a temporary tax cut, which would be more appropriate if a recession were imminent. Nor am I talking about giving the economy a mere shot in the arm, to ease some temporary complaint. I am talking about the accumulated evidence of the last 5 years that our present tax system, developed as it was, in good part, during World War II to restrain growth, exerts too heavy a drag on growth in peace time; that it siphons out of the private economy too large a share of personal and business purchasing power; that it reduces the financial incentives for personal effort, investment, and risk-taking.

    In short, to increase demand and lift the economy, the Federal Government's most useful role is not to rush into a program of excessive increases in public expenditures, but to expand the incentives and opportunities for private expenditures.

    In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now. The experience of a number of European countries and Japan have borne this out. This country's own experience with tax reduction in 1954 has borne this out. And the reason is that only full employment can balance the budget, and tax reduction can pave the way to that employment. The purpose of cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus.
    The Clintons are what happens...
    when you have NO MORAL COMPASS.

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    Re: Supply & Demand

    Quote Originally Posted by American View Post
    Maybe because they bring jobs to town...and that means taxes.
    You mean bribes to town?

    Since Reagan they have been leaving town.

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    Re: Supply & Demand

    Quote Originally Posted by zimmer View Post

    Incredibly obvious, except for the younger generations that haven't spent much time in the work force, or have ever tried to get a business off the ground.

    Jot that one down in the Shock & Awe column.

    Here is a short course from the Libs Fav to help them along in understanding what once was common knowledge and common sense.
    In the days of Kennedy there was hope for the American dream. Nixon gave it to China, Reagan helped destroy the unions. It's been downhill ever since.

  8. #58
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    Re: Supply & Demand

    Quote Originally Posted by LiberalAvenger View Post
    You mean bribes to town?

    Since Reagan they have been leaving town.
    Read the above.
    At one time Democrats understood Capitalism worked, how it worked and were anti-Communists.

    How things deteriorate so quickly.

    .
    The Clintons are what happens...
    when you have NO MORAL COMPASS.

  9. #59
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    Re: Supply & Demand

    Quote Originally Posted by zimmer View Post
    Read the above.
    At one time Democrats understood Capitalism worked, how it worked and were anti-Communists.

    How things deteriorate so quickly.

    .
    Are you still fighting commies?

  10. #60
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    Re: Supply & Demand

    Quote Originally Posted by LiberalAvenger View Post
    Are you still fighting commies?
    They have infiltrated the Democrat party.

    .
    The Clintons are what happens...
    when you have NO MORAL COMPASS.

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