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You have to be able to produce the product or deliver the service at a lower cost than people are willing to pay for it. Demand is just one factor that affects
by kokey 14y ago
You have to be able to produce the product or deliver the service at a lower cost than people are willing to pay for it. Demand is just one factor that affects how much they are willing to pay. The most basic example is an investment in an invention that saves people time and money, so people are willing to pay a portion of the time and money they are saving. Demand is then influenced by various things, including how important or significant this saving is, and how many other options they have to achieve similar savings, including alternatives from competitors. A good investor would be someone who understands and consider all these factors.
- jiggy2011 14y agoWhen you have a large wealth gap it simply becomes less profitable to produce goods that are of high utility to those with less money. So you may get more bang for your buck by investing in companies that give labour saving benefits to the already wealthy, thus net increasing unemployment. With less income disparity the best goods to invest in may be ones which provide quality of living improvements across the spectrum.