responses

Unit 3 Discussion

Michael

4/13/2014 2:24:47 AM

       I chose "Whenever the price of bicycles increases, the supply of bicycles increases." I have to disagree with this statement. Just because the price of a product increases doesn’t mean the supply increases as well. It is actually opposite; the price of a product goes up as the supply decreases. When the market is flooded, prices go down to get rid of excess. For example, if the last 1965 Shelby Cobra in existence goes up for sale, the price is going to be a lot higher than what it was when there were more in the market (less supply). On the other hand, if there are 10,000 of them in the market place the selling price is going to be lower because there is more variety (more supply). I hope this makes sense to everyone.