ORIGINAL: David Cutler
ORIGINAL: BasinBum
Hey David,
I just talked to my friend Milton Friedman and he said if demand goes up and supply stays the same the price will increase.
That's funny, the last time I spoke to me ol' mate Milton he said that this only happens if the company in question is cute enough to be able to change price, and, even if that's true, costs go down with higher volume, so that elusive profit margin naturally goes up thus reducing the pressure from those nasty finance people to have a price increase.
-David C.
you didn't read the post, me lad.
Basinbum pointed out that with no increase in volume, the price goes up. Well known fact. If demand is greater than the supply, price increases.
You, on the other hand, naively assume that production will increase. Why work harder when you can make more money by staying on an even keel?
Roger