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Old 05-10-2021, 06:13 PM
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Pura Vida Pura Vida is offline
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Location: Sacramento, CA & Tamarindo, Costa Rica
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Sure. But if you could get 500 2x4's for the original price (supply), and the same number of people wanted them (demand), your price would likely remain unchanged. When either factor changes, it's going to impact the market price, and it can easily work the other way.

Example: tech products. The newest gadget will command a premium price; everybody wants it (demand), and nobody has it (supply). But flash forward 2-3 years, and that same item will be offered for a fraction of the price (widespread availability; demand shifts to the latest hot item).

Example #2: seasonal clothing / accessories. Buy summer clothing at the beginning of the season, and you'll pay full price (or what the retailer wants to sell) b/c demand is high and supply may be low to start. But that same item may be sitting on the clearance rack at the end of summer (or later) b/c there's no demand for it (reduced demand outstrips reduced supply).

Example #3: collectible item. 100 of an item are made. The first 90 are sold at asking price, and people realize it's way better than originally thought. Those last 10 items are going to be in high demand and low supply, so guess what happens to the price? Up, up, up.

I just read about a band, who released a single 10 years ago on vinyl, and collectors bought them up, driving the price beyond what normal fans could afford (hundreds $$$ for a record). So, the band went back and pressed more vinyl to flood the supply and bring prices back down for their fans. As long as there is no distinguishable way to tell apart the pressing dates, this will work and stick it to the collectors, in favor of the fans.
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