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Quote:
Any economist will tell you that conclusion is completely invalid because it doesn't take into account the different target markets (size and nature), different elasticities of demand, vastly different supply curves, and probably many other crucial factors.
Only if both the supply and demand curves for headphones/sepakers were equivalent (and the market was one homogenous segment), would this be the case. Reality isn't even close.
Originally Posted by ssportclay Economics dictates that $300 speakers are exactly equal to $300 headphones.If speakers at this price were a lot better than headphones than nobody would buy the headphones and all of the manufacturers would go out of business.In turn,if the headphones were a lot better than the speakers at this price than nobody would buy the speakers resulting in all speakers going out of production.To say that one costs ten times more than the other at an equal value in nonsence. |
Any economist will tell you that conclusion is completely invalid because it doesn't take into account the different target markets (size and nature), different elasticities of demand, vastly different supply curves, and probably many other crucial factors.
Only if both the supply and demand curves for headphones/sepakers were equivalent (and the market was one homogenous segment), would this be the case. Reality isn't even close.