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Does it though? I’d assume that if supply is restricted. Demand goes down. Keeping prices relatively in check. E.g. if Greece is the same price as south of Fra
by bushbaba 6y ago
Does it though? I’d assume that if supply is restricted. Demand goes down. Keeping prices relatively in check.
E.g. if Greece is the same price as south of France. People would just go to France.
- jayparth 6y agoPerhaps. As someone who travels relatively infrequently, I'm pretty price insensitive. Like I'm traveling. Who cares if one of those locations is 20% cheaper? I wonder of many people are like me. I doubt that people are very price sensitive when visiting landmark cities.
- Aerroon 6y agoI've never been to France or Greece, but are they comparable destinations for a vacation? I was under the impression that a vacation in Athens will be warm and sunny, whereas Paris will likely be cloudy.
- StavrosK 6y agoThey probably meant the Mediterranean part of France (Marseille, Montpellier, etc), but yeah, that comparison seems a bit odd to me too.
- deleted 6y ago[deleted]
- _rpd 6y ago> if supply is restricted. Demand goes down Luxury goods can behave oddly, but in general demand is independent of supply. Restricting supply causes prices to rise, which lowers demand (at that high price). The underlying demand (at the lower price) remains constant.