4 ms·

>> price is determined by BOTH supply and demand Most of economics teaching is about exploring just how wildly wrong econ101 is. E.g. who passes on insulin si

>> price is determined by BOTH supply and demand Most of economics teaching is about exploring just how wildly wrong econ101 is. E.g. who passes on insulin since the last price increase? E.g. why does a basic black and white rolex daytona cost around £12k at an authorized dealer? (For non-watch people there’s a 10 year wait list to buy at that price but you can buy 2nd hand immediately for a LOT more)

akavi 5y ago
People certainly pass on specific kinds of insulin when their price increases. Note that the "old" kind of insulin is available for 25 $/vial. It sucks in a lot of ways (requires more frequent dosage, and has a smaller margin of error), but it is dramatically cheaper than the newer and better kinds. So financially strapped diabetics do have a trade off available to them.
WalterBright 5y ago
> why does a basic black and white rolex daytona cost around £12k at an authorized dealer? Because they're buying a status symbol, not a watch. > For non-watch people there’s a 10 year wait list to buy at that price but you can buy 2nd hand immediately for a LOT more An excellent demonstration of Supply&Demand at work. Your example doesn't refute S&D at all :-)
- CraigJPerry 5y ago
  >>> the sticker price has nothing to do with the cost of materials; it’s driven only by how much people are willing to pay >> why does a basic black and white rolex daytona cost around £12k at an authorized dealer? > Because they're buying a status symbol, not a watch QED?
- xzel 5y ago
  This is why the other poster got frustrated with you. The current watch market is a terrible example of supply and demand as a traditional model. Do you think S&D effectively models NFT marketplace? Because the watch market is a lot more like that, too complex to be models effectively by traditional S&D. Source: am a reseller.
  - WalterBright 5y ago
    It's a perfect example. Supply is limited, demand is high => high prices. > Do you think S&D effectively models NFT marketplace? Of course it does. The supply is one item, and so the highest bidder gets it. I am baffled why you think it is not S&D. If you have more questions, fire away!
    - CraigJPerry 5y ago
      >> and so the highest bidder gets it The highest bidder is around £30k but the person who got it paid £12k. You can walk into an AD and bid all you want, they’ll let you try it on or find your favourite colour version. You aren’t buying it though.

akavi 5y ago

People certainly pass on specific kinds of insulin when their price increases. Note that the "old" kind of insulin is available for 25 $/vial. It sucks in a lot of ways (requires more frequent dosage, and has a smaller margin of error), but it is dramatically cheaper than the newer and better kinds. So financially strapped diabetics do have a trade off available to them.

WalterBright 5y ago

> why does a basic black and white rolex daytona cost around £12k at an authorized dealer? Because they're buying a status symbol, not a watch. > For non-watch people there’s a 10 year wait list to buy at that price but you can buy 2nd hand immediately for a LOT more An excellent demonstration of Supply&Demand at work. Your example doesn't refute S&D at all :-)

CraigJPerry 5y ago
>>> the sticker price has nothing to do with the cost of materials; it’s driven only by how much people are willing to pay >> why does a basic black and white rolex daytona cost around £12k at an authorized dealer? > Because they're buying a status symbol, not a watch QED?
xzel 5y ago
This is why the other poster got frustrated with you. The current watch market is a terrible example of supply and demand as a traditional model. Do you think S&D effectively models NFT marketplace? Because the watch market is a lot more like that, too complex to be models effectively by traditional S&D. Source: am a reseller.
- WalterBright 5y ago
  It's a perfect example. Supply is limited, demand is high => high prices. > Do you think S&D effectively models NFT marketplace? Of course it does. The supply is one item, and so the highest bidder gets it. I am baffled why you think it is not S&D. If you have more questions, fire away!
  - CraigJPerry 5y ago
    >> and so the highest bidder gets it The highest bidder is around £30k but the person who got it paid £12k. You can walk into an AD and bid all you want, they’ll let you try it on or find your favourite colour version. You aren’t buying it though.