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I suspect that to an extent, prices rise with the proportion of income people are willing to allocate to something. Cars will rise to the amount that matches th
by gbro3n 4y ago
I suspect that to an extent, prices rise with the proportion of income people are willing to allocate to something. Cars will rise to the amount that matches the importance people place on them. If cars become less important due to electric bikes and Zoom, manufacturers will be able to charge less. The investment in researching car design would decrease accordingly. Same with energy sources etc.
- quonn 4y agoTrue, but only for goods with a moat. Let's say an iPhone. I may value a fruit at 10 Euros and you may sell me a fruit at that price, but if someone else can produce them for 2 Euros they will perhaps sell them for 5 Euros and make a good profit. So the price will be 5 or even less.