From: Todd Walton <[EMAIL PROTECTED]> On 7/16/05, boblq <[EMAIL PROTECTED]> wrote: > On Saturday 16 July 2005 09:55 am, Todd Walton wrote: > > But there is no economic class for which price is truly > > not an issue. > > Houses from say $5 Million up fall into this second class. And why isn't that $5 million dollar house $10 million? Or $20 million? The $32 million house you linked to has 17,000 square feet and sold for $17 million. Why? Why not the $32 million dollars asked? Why not $50 million? What drove the buyer to seek a lower price? That house falls, by far, into the range of $5 million and up that you gave as being where price is no issue. It certainly looks like an issue to me, even at tens of millions of dollars. To paraphrase: Economics is a demanding mistress, so if you love her be prepared to accept her wishes. "Price" being "no issue" is a contradiction in terms.
Very, very wrong. Look up the term "elasticity", specificly "elasticity of demand". There are good for which the price is no issue, regaurdless opf what it is. These are generally refered to as "priceless". Most goods have bands where their demand is elastic or inelastic.
No offence, but it seems you have a very basic understanding of economics. There is research beyond supply and demand. Most of it deals with trying to understand why supply and demand doesn't work as expected in the real world, and why markets don't react like they "should". Basing anything off just supply and demand is like basing physics calculations off a world with no friction or air resistance. You'll get an answer that makes sense, but totally different from actually trying it.
Gabe -- [email protected] http://www.kernel-panic.org/cgi-bin/mailman/listinfo/kplug-list
