Gateway (GTW) Message Board

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Technology Stocks : Gateway (GTW)

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To: Skeeter Bug who wrote (4918)	12/4/1997 1:12:00 PM
From: Tmanquinn	Read Replies (2) of 8002

<<demand will go down as relative prices increase.>> Either your smokin' some good stuff or you need to take Eco 101 again. Your comment takes a myopic view of the market(s). If the overall demand increases, a relative price increases as in GTW's case will result in relative decrease in demand (i.e. smaller market share]. However, this does NOT result, necessarily in lower profitability nor in lower absolute demand in terms of # or units. Therefore, my eager student, if the absolute demand does not decrease, and it may not with an expanding market size, profits will increase to the extent that absolute demand increases and component cost decrease.

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