Very often for water bills, you have to pay more per unit once your consumption goes
above a certain level. This might make it seem like the price goes up because your
quantity demanded goes up(which reverses the causality) and would mean an upward
sloping demand curve.
But if there is a
Amazon has backed down on its "price discrimination" scheme (and made
thousands of dollars in refunds) discussed here earlier. Price
discrimination in quotes because according to Amazon they were merely
offering different prices on a random basis to figure out the profit
maximizing point.
There's a new article in the Washington Post about Amazon's dynamic
pricing, at
http://www.washingtonpost.com/wp-dyn/articles/A15159-2000Sep25.html.
Here is a quote:
Amazon swears it won't happen there again. "Dynamic pricing is stupid,
because people will find out," said spokesman Curry.
In a recent discussion I had (off-line), someone described the demand for
heroin (by heroin addicts) as perfectly inelastic. I responded that that
was a bit off; if demand for heroin were perfectly inelastic, I would charge
$1 billion a hit, and inevitably find a buyer. I offered, as a
I am not sure one can talk of the demand for
love more than about a demand for happiness. As
Rothbard said, people make choices at the margin, they demand a certain
type of love relationship in a certain period of time.
Formulated this way, it becomes clear that substitution phenomena occur
in
You need to make a distinction between the market elasticity for a good and
the individual elasticity for a good in that market. The market elasticity
for heroin may be very inelastic. The elasticity for heroin sold by you
will likely be much more elastic.
The same is true for many goods.
Ed Dodson responding...
[EMAIL PROTECTED] wrote:
Very often for water bills, you have to pay more per unit once your consumption goes
above a certain level. This might make it seem like the price goes up because your
quantity demanded goes up(which reverses the causality) and would mean an
