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The reverse can be true for both of those points. Raising the price to the market-clearing level increases the probability that it gets sold to someone who plac
by orangecat 15y ago
The reverse can be true for both of those points. Raising the price to the market-clearing level increases the probability that it gets sold to someone who places a greater value on it.
- JoachimSchipper 15y agoYes, but (value) - (price) still decreases. Higher prices are not good for the buyer, as should be obvious.
- orangecat 15y ago"The buyer" isn't necessarily constant. Suppose Alice values a widget at $100 and Bob values it at $200, and also that Alice spends much more time on Craigslist than Bob. If you sell a widget for $75 then Alice will probably buy it, which results in less consumer surplus than if you sold it for $150.
- mapster 15y agoBuyers have different motives. As do sellers. Mismatches are common, and when people make a trip to someone's residence to look at product in question (as thru CL), the deal, typically goes through, leaving mismatched feelings about the deal.