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> I wouldn't expect the price of rice, steel, concrete, or airplane tickets to change much. Not at first, but the price of everything is connected eventually.
by donatj 11y ago
> I wouldn't expect the price of rice, steel, concrete, or airplane tickets to change much.
Not at first, but the price of everything is connected eventually.
- ThrustVectoring 11y agoMy point is that price is the balancing point between selling for as much as you can find a buyer for, and buying for as little as you can find a seller for. Different goods have a different balance of power between buyers and sellers. Gasoline, for instance, has highly visible prices and little product differentiation. Choosing a different gas station is as easy as crossing the street. Customers will tolerate very little increase in price relative to the competition, so the price of gasoline is approximately equal to the cost of selling people gasoline.