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Just like any luxury good, they'll restrict the supply while keeping the price high. Simply because many people don't even consider Prada shoes as an option has
by hnhg 15y ago
Just like any luxury good, they'll restrict the supply while keeping the price high. Simply because many people don't even consider Prada shoes as an option hasn't made them any cheaper.
- nagrom 15y agoWe're not considering only luxury goods though. There'll always be other suppliers of shoes willing to cut their prices to match demands, just like other colleges will cut their prices to match a spectrum of demand. I think the point is that a Harvard degree will remain viewed as worth more than a Podunk College degree, regardless of the demand because the supply is naturally self-limiting. However, the cost of Podunk College will oscillate with the demand/supply.