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Old May 3rd, 2010, 13:43   #40
krap101's Avatar
Join Date: Jun 2007
Location: Roscoe, IL USA
Someone said earlier that supply and demand didn't answer it, but I think it does. If you import 10 guns a month (let's just say...) and you sell those 10 guns in the first day, you have nothing to sell for the rest of the month. That means that the price is too low. If you sell less than the 10 guns, then the price is too high. The equilibrium price is there the supply and demand curves meet. Ideally, the seller will sell 10 guns a month, sometimes all 10, sometimes less. Until he can increase the supply, he must keep prices higher. So if people keep buying, he will keep having to increase prices until he can afford to expand (lets say 15 guns a month). Then he will have 15 guns to sell, so he can lower prices to try to sell all 15. Guns sitting on the shelf are wasted money, no guns on the shelf are wasted money. (sorry to have to say that, but it's the truth) It's a consumer market.. I do agree that sometimes the markup is too high, and they could be making more money with a higher turnover rate, but things are the way they are. True, if one seller decided to mark up 20% and had a ridiculous turnover rate, prices would drop, but eventually, all of the smaller shops would close and there would only be a few big sellers. This is when they can control the market and charge whatever they want. Competition=lower prices. Collaboration=higher prices. Ever hear of a company who was doing very well, and after they expanded, they failed, become they overestimated demand? I have..

Un otro problema es el gobierno :P.

Btw, how are there 84 million votes?-
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