Thursday, August 28, 2008
Letters to the Web Editor
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Jeff Holberton
Joined: 19 May 2008 07:49 pm
Posts: 19
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Posted: 22 May 2008 07:37 pm
Post Subject: Re: Not good idea Read Article
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| You need to research this. The 23% is only the first year, and yes it is a 30% markup. You expect profit motivated businesses to lower prices out of the kindness of their hearts. |
Bill,
Do you understand economics? I agree with you wholeheartedly that profit motivated businesses will not lower prices out of the kindness of their heart. Supply, demand and market compatition will set the price of products. I will try and break it down for you:
The consumer (demand side) will buy a product from a producer (supply side) that has the same or like product at the lowest price in the market (competition). Ie... I will buy an apple from the person who sells the least expensive apple. The profit motivated apple seller that is not lowering the price (out of the kindness of their heart) will have a cart full of apples and an empty bank account.
Once the embedded taxes are removed from the price, market competition will continue to control price points as it does in the current system.
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