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Technology Stocks : Semi Equipment Analysis

SOXX 301.15

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4:00 PM EST

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To: Gottfried who wrote (8725)	2/22/2003 6:39:00 PM
From: Sarmad Y. Hermiz	Read Replies (1) of 95656

>> if they could raise price and sell the same number of units, that would be pricing power. G. [end] Gottfried, Well, terms might have changed since I took college Economics, But I think that would be called "price in-elasticity". Pricing power is different. In pricing a commodity, if one seller raises price, but competitors don't, the raiser will lose all sales to the other sellers. Imagine two gas stations next to each other. If only one of them raises price his revenue will drop to zero. However, if both stations raise price equally, unit sales will drop by the elasticity factor, but they may actually end up with higher revenue. Sarmad

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