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Politics : Actual left/right wing discussion

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To: Gersh Avery who wrote (5800)	1/19/2007 1:52:21 PM
From: Brumar89	Read Replies (2) of 10087

If something is desirable, raising the price can cause an increase in demand. Check a marketing textbook for examples. "The demand curve shows an inverse relationship between price and quantity demanded. This relationship is considered so pervasive, particularly for the market demand, that in economics it has been termed the law of demand. The higher the price the lower the quantity demanded, and the lower the price the higher the quantity demanded. Although the law of demand is not logically absolutely necessary, given the case mentioned earlier of a Veblen luxury good, most goods or services are believed to adhere to the law of demand." krypton.mnsu.edu What you may be referring to: "...higher prices reducing the quantity of demand, and lower prices increasing the quantity of demand. But there can be exceptions. A Veblen good appeals to customers because of its high price (and status). Russian caviar, large diamonds and large luxury cars or yachts may be examples. Raising the price for these goods may not decrease quantity demanded." For these luxury or status symbol goods, the main force driving demand is rising incomes. Are you saying marijuana or other drugs are status symbols?

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