> Fred Foldvary:
> If the perception is that it is of better quality, then it is a different
> product, and the demand curve, which is for just one product, does not
> slope up.
>
Couldn't these two be disentangled? It seems to me that, OK, there are
various reasons why, if the market price rises, this may influence the good
(through perceptions) so that demand rises. However, if a single consumer is
then told that "You know those expensive new jeans? I have a brother who
works in a store and can get them cheap...", then this single consumer would
buy more at this lower price. As long as the market price is held constant,
the "price people in general face", if you like, then an individual consumer
will have a downward sloping demand curve, since only the price (and not the
good) will vary.
Ole J. Rogeberg
