Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 63.16

-1.8%

3:59 PM EST

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To: KyrosL who wrote (24461)	11/16/2001 5:06:52 PM
From: John Cuthbertson	Read Replies (1) of 29987

"in the last quarter MOU increased while revenues from MOU dropped. This means that per minute prices dropped a lot, on the average. It also means that elasticity of demand does not exist." Kyrosl, Actually, it shows directly that elasticity of demand does exist: prices went down, and volume went up, that's the very definition of price elasticity of demand! The crucial question is how much elasticity there is. That depends on the shape of the whole curve of demand vs. price, and that curve is influenced by marketing, as you suggest, as well as many other things. I think we've not yet found out how much demand there could be. ==John C.

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