Quote from: bobfett33 on May 30, 2004, 05:40:11 PMWell, you COULD assume that the companies will lower their prices in a price war when demand is high... but by the same token, when demand ISN'T so high, many laptop companies might reduce their prices to increase demand for their product.When the demand curve shifts to the left (a reduction in demand), both quantity and price decrease. If a company decides to sell their product at a price above the value determined by the market, there will be a deadweight loss. You are correct, if the supplier decided to sell their product a price below the value determined by the market value, the quantity demanded by the consumer would increase. But there would still be a deadweight loss experienced by the supplier, therefore it is not favorable to do so. Making the basic assumptions of course.
Well, you COULD assume that the companies will lower their prices in a price war when demand is high... but by the same token, when demand ISN'T so high, many laptop companies might reduce their prices to increase demand for their product.
Quote from: thinknpositive on May 30, 2004, 06:19:27 PMQuote from: bobfett33 on May 30, 2004, 05:40:11 PMWell, you COULD assume that the companies will lower their prices in a price war when demand is high... but by the same token, when demand ISN'T so high, many laptop companies might reduce their prices to increase demand for their product.When the demand curve shifts to the left (a reduction in demand), both quantity and price decrease. If a company decides to sell their product at a price above the value determined by the market, there will be a deadweight loss. You are correct, if the supplier decided to sell their product a price below the value determined by the market value, the quantity demanded by the consumer would increase. But there would still be a deadweight loss experienced by the supplier, therefore it is not favorable to do so. Making the basic assumptions of course. First off I agree with your overall point (IBM's are not the be all end all of notebooks), but your economics lesson is a bit flawed. You must remember that you are assuming perfect information. OK so lets assume really good information, prices are still sticky in the Short Run. There are a few other flaws with your reasoning, but I'm too tired to get into it.Good arguement but flawed.
you know what's funny? whenever I check the price of a laptop through my school's (UG and grad) computer program with Dell/IBM/etc., I find that the supposed "discounted" price is more often than not MORE expensive than if I were to buy directly from Dell/IBM...anyone else notice that?
Quote from: baseballjones on June 01, 2004, 02:35:25 AMQuote from: thinknpositive on May 30, 2004, 06:19:27 PMQuote from: bobfett33 on May 30, 2004, 05:40:11 PMWell, you COULD assume that the companies will lower their prices in a price war when demand is high... but by the same token, when demand ISN'T so high, many laptop companies might reduce their prices to increase demand for their product.When the demand curve shifts to the left (a reduction in demand), both quantity and price decrease. If a company decides to sell their product at a price above the value determined by the market, there will be a deadweight loss. You are correct, if the supplier decided to sell their product a price below the value determined by the market value, the quantity demanded by the consumer would increase. But there would still be a deadweight loss experienced by the supplier, therefore it is not favorable to do so. Making the basic assumptions of course. First off I agree with your overall point (IBM's are not the be all end all of notebooks), but your economics lesson is a bit flawed. You must remember that you are assuming perfect information. OK so lets assume really good information, prices are still sticky in the Short Run. There are a few other flaws with your reasoning, but I'm too tired to get into it.Good arguement but flawed.Gee thanks. I'm well aware of what assumptions I made.
I'm looking for a light laptop with at least a 14 inch screen... My brother said not to buy a Dell laptop because everyone has problems with it after 2 years and he said his friend's dell melted on him... has anyone else had this unfortunate outcome with Dells?
Quote from: thinknpositive on June 01, 2004, 08:39:38 AMQuote from: baseballjones on June 01, 2004, 02:35:25 AMQuote from: thinknpositive on May 30, 2004, 06:19:27 PMQuote from: bobfett33 on May 30, 2004, 05:40:11 PMWell, you COULD assume that the companies will lower their prices in a price war when demand is high... but by the same token, when demand ISN'T so high, many laptop companies might reduce their prices to increase demand for their product.When the demand curve shifts to the left (a reduction in demand), both quantity and price decrease. If a company decides to sell their product at a price above the value determined by the market, there will be a deadweight loss. You are correct, if the supplier decided to sell their product a price below the value determined by the market value, the quantity demanded by the consumer would increase. But there would still be a deadweight loss experienced by the supplier, therefore it is not favorable to do so. Making the basic assumptions of course. First off I agree with your overall point (IBM's are not the be all end all of notebooks), but your economics lesson is a bit flawed. You must remember that you are assuming perfect information. OK so lets assume really good information, prices are still sticky in the Short Run. There are a few other flaws with your reasoning, but I'm too tired to get into it.Good arguement but flawed.Gee thanks. I'm well aware of what assumptions I made. Then why did you make an argument that didn't prove anything if you were aware of how limited your analysis was? For example, you are assuming the company knows they will have a deadweight loss. They will realize it only if they have perfect information or they will realize it after a significant lag to have good information.You don't need to take a nasty tone. If I'm misreading you then I apologize.
I do have a small dilemma though. I am torn between getting an ultra-portable and a thin and light. Any current law students or insightful pre-law students have any advice? I can't decide if I want to make the obvious sacrfices and get an ultra-portable or go with a thin-and-light and deal with an extra pound or so. Also is battery life incredibly important?