Monday, September 14, 2015

Jack Bexell, Chapter 1, Question 5

"If there are more potential pet owners than dogs available, then the price of dogs will go up." (Wheelan 16)

Charles Wheelan makes an interesting "analogy" with the use of dogs. If there are more consumers than there are of the product, then prices will raise. This will be because the cost of keeping the product, the dogs, in the store is more than the amount of people buying the product. They raise the prices, and some people end up buying another product, like Wheelan said of ferrets, and some people need that product, so they accept the price they were offered and get the dog of their dreams. This is an interesting way to shift the pricing of things so that each product in the market gets changed. In this example of the prices of dogs increase, there is a change in the ferret market. I never knew that one thing could influence others in such a large complex scale.

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