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I'm missing a lot of details, but doesn't classical economics say that if demand drops then the price should drop, too? Does this mean we can expect (or are al

I'm missing a lot of details, but doesn't classical economics say that if demand drops then the price should drop, too? Does this mean we can expect (or are already seeing?) a drop in phone prices?

mulmen 3y ago
> I'm missing a lot of details, but doesn't classical economics say that if demand drops then the price should drop, too? Price is the intersection of supply and demand. If demand drops price can be maintained by reducing supply. With economies of scale a drop in demand may actually translate to an increase in price as Apple has development and production costs to cover.