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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Mike Johnston who wrote (36335)7/27/2005 2:05:09 AM
From: gpowellRead Replies (1) | Respond to of 306849
 
You lost me here. Are you really saying that a drop in consumption could cause an increase in price as opposed to an increase in price causing a consumption drop ?

If the marginal buyer (i.e. lowest reservation price) drops out of a market, the profit-maximizing price could go up depending upon the specifics of the supplier's marginal cost curve.


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