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To: kellynla

The free market rocks....
This is just a great lesson in basic economics. Higher prices ration supply, supply increases because the sellers have more incentive to to bring in more supply, and demand is reduced.
We don't need no stinkin govt intervention...


57 posted on 09/08/2005 9:07:37 AM PDT by HereInTheHeartland (The Democrat party is the official party of the Morlocks.)
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To: HereInTheHeartland
Higher prices ration supply, supply increases because the sellers have more incentive to to bring in more supply

Less supply = more profit
Less supply = less operating cost = even more profit
More supply = low prices = less profit

Wheres the incentive to have a higher supply?

90 posted on 09/08/2005 11:05:42 AM PDT by Realism (Some believe that the facts-of-life are open to debate.....)
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