4 ms·

Of course, the ink-sellers would just promptly raise their prices. But, it's still a very creative way to approach the budget issue.

• crusso 13y ago
  Is there a reason why you think that a typical price-demand curve wouldn't apply to printer ink? http://www.bized.co.uk/learn/economics/markets/mechanism/interactive/part1.htm http://www.bized.co.uk/learn/economics/markets/mechanism/int...
  • jlarocco 13y ago
    Yes. Ink and printers are complementary goods. A person can't buy whatever ink they want, they need the ink that goes with their printer. At the same time, if ink prices go up $5 per cartridge, few people will go out and buy an entirely new printer.
    • crusso 13y ago
      Inelasticity of demand from complementary goods comes into play when the complementary good is relatively very expensive or difficult to replace. Consumer printers cost about the same as an ink cartridge or two. Consumers aren't "stuck" paying for more expensive ink if manufacturers decide to start screwing them on the price. [edit: wanted to add this] Even with the ridiculously complementary goods of automobiles and gasoline, more expensive gas shifts consumer demand away from gas guzzlers.
      • johnward 13y ago
        This is why some people will actually buy a new printer when their ink runs out.
        • djpowell 13y ago
          The cartridges in a new printer will typically be "starter cartridges" and contain a fraction of the ink of a standard cartridge though.
          • johnward 13y ago
            This is true but I guess the people who do this either don't realize or still think it's a better decision.
      • jlarocco 13y ago
        And if this were about typical consumers, I might agree. But this is about the government, who most likely has a contract with a supplier, locking them in to their ink prices when they buy the printer. And, if nothing else, getting approval to buy a printer will take longer and require more paper work than getting approval to buy ink.
  • amykhar 13y ago
    Yes. There are some things that people can't realistically do without. I worked as a stringer for the local paper for some years. In this capacity, I covered local water / sewer authorities. The typical cycle went like this. The authority raised rates to meet their costs. People used less to try to cut theirs. The authority took in less money; so they raised the rates again. Also, in the US, these contracts go to the lowest bidder. The bidding process is not exactly always the most honest and truly competitive. The combination of these two things is why I fully expect ink prices to go up.
• eru 13y ago
  Why don't they raise prices now already?