-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 On 03/30/07 10:35, John Hasler wrote: > Celejar writes: >> Doesn't basic economics dictate that given competition, the equilibrium >> price is determined by both supply and demand? Even if I'm willing to pay >> a great deal, if the cost to produce the item is low, competition should >> drive down the price. > > People who buy cheap white bread buy cheap white bread. They just want > something to stuff in the kids' mouths. Price is almost all that matters. > People who buy whole wheat bread are picky. They want bread that they > believe fits their notions about nutrition and are influenced by what their > friends say and by the labeling and advertising.
Or, besides being better for you, it *tastes better* than that gummy white stuff. Oroweat 100% Whole Wheat is my family's standard bread. > Price is far from their > sole criteria: some will deliberately avoid the cheapest brand because they > believe that it must be inferior. We buy the cheapest *whole* wheat bread at the local store that doesn't taste like crumbly cardboard. > Some will buy the most expensive brand > because "you get what you pay for" or just so they can brag. > >> Are you implying that the market is a monopoly or oligarchy? > > No. The generic white bread market and the whole-wheat bread market are > two different markets with different elasticities. This results in > different equilibrium prices even with identical costs (which they probably > aren't). This is basic economics. Did you not study it at university? Look at the ingredients list of white bread and whole wheat bread. - -- Ron Johnson, Jr. Jefferson LA USA Give a man a fish, and he eats for a day. Hit him with a fish, and he goes away for good! -----BEGIN PGP SIGNATURE----- Version: GnuPG v1.4.6 (GNU/Linux) iD8DBQFGDVVYS9HxQb37XmcRAoKbAJ9X3k7Cg/DgxO+xeGiGkPHOvtw7vwCaAzRN EIYmUPEjQa6U5Ryf05iAeWQ= =hJEl -----END PGP SIGNATURE----- -- To UNSUBSCRIBE, email to [EMAIL PROTECTED] with a subject of "unsubscribe". Trouble? Contact [EMAIL PROTECTED]
