SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Jock Hutchinson who wrote (143615)10/2/1999 10:20:00 AM
From: PAL  Read Replies (1) | Respond to of 176388
 
Edamo: Truly you are the one who is clueless. An increase in price will (all other factors being equal) result in less
demand. A decrease in price will (all other factors being equal) result in greater demand. Thus, since there appears
to be a short-term increase in price (due to lower supplies of motherboards), there will clearly be less (somewhat)
demand.


Wow!!! You must have heard of demand elasticity. AOL raised monthly rate from $ 19.95 to $ 21.95 some time ago. The numbers of subsribers keeps going up.

My observation is that many highly educated people look for complex solutions when simple common sense will do. They think the more complex the formula is, the higher the return will be. That is why I have been saying that generally PhD degree is the most useless degree unless you are in scientific research.

Here is a simple test: Which number does not belong in the group:

1 3 9 27 243?

Paul



To: Jock Hutchinson who wrote (143615)10/2/1999 12:26:00 PM
From: edamo  Read Replies (3) | Respond to of 176388
 
jock ????????????????

clueless...about time you and some others get your heads out of your ass and stop being so myopic about the reality of the world. economists live on statistics and textbook knowledge. increase of price does not, i repeat does not limit demand...never did, never will...demand is on the consumption side, supply on the production side. not talking about dell or any other specific company.

if you and skeeter are so damn smart, then how can luxury resort home real estate market increase price two fold in a year and have more demand then before. same holds true for luxury cars, or anything high end...if the consumption side has disposable income and can afford the product the demand will exist...decrease the price of an item that the consumption side doesn't want, and there still exists no demand....sell a fifty pound bag of coal for a penny....pretty cheap...who wants it!!!! so much for price/demand theory.

i reiterate an increase in the price of food...does it lessen demand, make people less hungry....

don't even bother to respond, i'm the clueless one...you're the genius, let me live in the darkness of ignorance...we all don't embrace economics 101...i'm just a dumb ass inner city high school graduate, educated on the mean ghetto streets who has accumulated tremendous wealth, not thru investment in dell or anything else, but by running a multinational business, and not by the textbooks......stupid me, teach me jock, teach me....lawyers..for the most part useless non productive members of society....same as politicians, who would miss their daily contributions to the world???



To: Jock Hutchinson who wrote (143615)10/2/1999 12:45:00 PM
From: rudedog  Read Replies (1) | Respond to of 176388
 
Jock -
An increase in price will (all other factors being equal) result in less demand. A decrease in price will (all other factors being equal) result in greater demand.

Part of the problem is that all other factors are nowhere near equal. The elasticity of the PC market is way different than a commodity market in any event, as has been proven many times over the last few years.

Increasing the price of CPQ desktops may result in a loss of sales by CPQ, but not because the demand decreases - but because customers buy from competitors. The radical drop in PC and server prices in 1H98 due to inventory glut did not stimulate demand - it just resulted in a decrease in margin for almost everyone in the game.

Temporary increases in price in the PC business (such as we may see due to the DRAM spike) can cause some customers to delay purchases for a while but the demand does not dry up, and whether the prices stay up or go back down, the overall demand stays about the same. a few weeks' shift in purchasing doesn't affect the industry very much, although individual players may be affected by their price timing. This is due to competition and shift in market share rather than a change in demand.

I just don't see price/demand relationships as being significant in the computer business - if any effects exist, they are so unimportant that they don't justify much attention.