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 A little lesson in economics (brilliant...if I do say so myself). |
Aaron Scott |
You know how you get a better price when you buy in bulk? Well, I put on my tinfoil hat and did a little thinking....
The more you buy of something, the less there is of it, right? So, let's say that there are 10 diamond rings for sale. Each one costs $1000. But if you buy FIVE of them, you get them for $800 each.
OK, so you buy the lot of five. So now there are LESS rings available. But the law of supply and demand says--well, you know what it says.
So how come the price isn't going UP with each purchase?
I believe THIS is the reason we are in trouble in America--we don't understand economics!
Add to this my insight on how we use dollars to buy cans of soup, but the soup company is using cans of soup to buy dollars...and I should win the Nobel Prize in Economics or something. |
Hon. Dr. in Acts-celeratology
Posts: 6042
2/4/18 1:43 pm
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| Re: A little lesson in economics (brilliant...if I do say so myself). |
Cojak |
| Aaron Scott wrote: | You know how you get a better price when you buy in bulk? Well, I put on my tinfoil hat and did a little thinking....
The more you buy of something, the less there is of it, right? So, let's say that there are 10 diamond rings for sale. Each one costs $1000. But if you buy FIVE of them, you get them for $800 each.
OK, so you buy the lot of five. So now there are LESS rings available. But the law of supply and demand says--well, you know what it says.
So how come the price isn't going UP with each purchase?
I believe THIS is the reason we are in trouble in America--we don't understand economics!
Add to this my insight on how we use dollars to buy cans of soup, but the soup company is using cans of soup to buy dollars...and I should win the Nobel Prize in Economics or something. |
I am beginning to worry about my logic. I think it is gone, cause for some reason this makes perfiect sense since I do not understand it.
I have heard about them 'bite coins' but the Soup dollars is new! 
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2/4/18 2:27 pm
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Quiet Wyatt |
The fact that five diamond rings were purchased means that diamond miners will continue to be motivated to mine more diamonds, since it is reasonable to believe they will be able to make a profit from the diamonds they mine. Likewise, the jewelers are motivated to use their talent and ability to take raw diamonds and make them into something beautiful that people will value enough to pay for.
The law of supply and demand does not mean that there is necessarily a smaller supply of diamonds once some products/diamonds are purchased.
Last edited by Quiet Wyatt on 2/4/18 7:13 pm; edited 1 time in total |
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2/4/18 7:09 pm
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Dave Dorsey |
Have you had your water tested recently?
 |
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2/4/18 7:12 pm
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Cojak |
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| QW, now wait just a minute! |
Aaron Scott |
| Quiet Wyatt wrote: | The fact that five diamond rings were purchased means that diamond miners will continue to be motivated to mine more diamonds, since it is reasonable to believe they will be able to make a profit from the diamonds they mine. Likewise, the jewelers are motivated to use their talent and ability to take raw diamonds and make them into something beautiful that people will value enough to pay for.
The law of supply and demand does not mean that there is necessarily a smaller supply of diamonds once some products/diamonds are purchased. |
First of all, how dare you try to steal my thunder and rob me of my rightful claim to a Nobel prize! But, consider if there are 10 specially-designed cars. These are the only cars of their type and are collectors items. A million apiece is the price. If someone comes up and want to buy nine of them, is it unreasonable for him to be give a slight discount, even though he is lowering the limited supply (I.e., they are not going to make/mine new cars)?
And don’t forget they are buying dollars with their cars. I will go wait be the phone for the Nobel Committee to call. |
Hon. Dr. in Acts-celeratology
Posts: 6042
2/5/18 6:26 am
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Quiet Wyatt |
| The seller may offer a discount if he desires to. It does not make sense that he would do so in the collectible car example to which you refer. But in any case, the economy of a nation or of the world for that matter is not a zero-sum game. |
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2/5/18 7:29 am
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Chicago27 |
| If there is a short supply, they won’t offer a discount unless they want to get out of the diamond business. |
Friendly Face
Posts: 253
2/5/18 8:14 am
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UncleJD |
| You getting the price reduced indicates that the supply was sufficiently high to warrant a lower price. You "demanded" 5, that does NOT indicate any NEW demand, it is part of the demand that brought about the reduced price. Had the demand been higher, the seller would not have agreed on that price because he could have just as easily and quickly sold them for more. |
Golf Cart Mafia Consigliere
Posts: 3147
2/5/18 9:36 am
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Dave Dorsey |
| Aaron, since you like thinking about this kind of thing, you might like the book The Undercover Economist. It's a very approachable, casual introduction to how economics works. |
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2/5/18 9:55 am
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Nature Boy Florida |
Sorry Dave.
Aaron hasn't mastered the Dick and Jane books yet.
No way he can read an economics book.
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Whether you like it or not, learn to love it, because its the best thing going today! |
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2/5/18 10:07 am
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| NBF!!! |
Aaron Scott |
| Nature Boy Florida wrote: | Sorry Dave.
Aaron hasn't mastered the Dick and Jane books yet.
No way he can read an economics book. |
Yes, I did! |
Hon. Dr. in Acts-celeratology
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2/5/18 11:30 am
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| Dave... |
Aaron Scott |
| Dave Dorsey wrote: | | Aaron, since you like thinking about this kind of thing, you might like the book The Undercover Economist. It's a very approachable, casual introduction to how economics works. |
I prefer Freakonomics, but if I find it on sale somewhere, maybe I can get that one, too. |
Hon. Dr. in Acts-celeratology
Posts: 6042
2/5/18 11:30 am
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Dave Dorsey |
| Freakonomics isn't a book about economics. It's a book about applying economic principles to behavior and things like that. |
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2/5/18 12:15 pm
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UncleJD |
| "The Wealth of Nations" is all you need to read on economics, everything else is just varying degrees of wrong. |
Golf Cart Mafia Consigliere
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2/5/18 12:40 pm
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| Aaron, I'll start with your first sentence... |
bonnie knox |
| Quote: | | You know how you get a better price when you buy in bulk? |
The better price when you buy in bulk happens because selling in bulk can reduce the associated costs (overhead) of selling an item.
In other words, if I have to feed my donkey one hay bale whether I take one dozen eggs or five dozen eggs to market on my donkey cart, I can either make a better profit on the five dozen (or reduce the cost of the eggs if I want to make the same profit).
Ask yourself why you get a better price when you buy in bulk. If you get the right answer there, you will head down a better path. Think about shipping costs, labor costs, warehousing costs, etc. |
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2/5/18 1:23 pm
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| Bonnie, what is this, Sabotage-Aaron-Day? |
Aaron Scott |
| bonnie knox wrote: | | Quote: | | You know how you get a better price when you buy in bulk? |
The better price when you buy in bulk happens because selling in bulk can reduce the associated costs (overhead) of selling an item.
In other words, if I have to feed my donkey one hay bale whether I take one dozen eggs or five dozen eggs to market on my donkey cart, I can either make a better profit on the five dozen (or reduce the cost of the eggs if I want to make the same profit).
Ask yourself why you get a better price when you buy in bulk. If you get the right answer there, you will head down a better path. Think about shipping costs, labor costs, warehousing costs, etc. |
Listen, you folks are seriously undermining my chances for a Nobel. This has to stop. I expect ENCOURAGEMENT, not a constant line of facts that go against my theory!
Get your act together, Bonnie--you and the lot of 'em!
Your words are to be "full of grace." Instead, all I hear are facts, facts, facts. Stop it. Stop it now.
You DO know there is a substantial cash prize that comes with the Nobel, right? Just remember that you just might be on my list of people to thank if you get in line with me here.
Your cooperation is appreciated. |
Hon. Dr. in Acts-celeratology
Posts: 6042
2/5/18 2:00 pm
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| Re: Bonnie, what is this, Sabotage-Aaron-Day? |
Nature Boy Florida |
| Aaron Scott wrote: | | bonnie knox wrote: | | Quote: | | You know how you get a better price when you buy in bulk? |
The better price when you buy in bulk happens because selling in bulk can reduce the associated costs (overhead) of selling an item.
In other words, if I have to feed my donkey one hay bale whether I take one dozen eggs or five dozen eggs to market on my donkey cart, I can either make a better profit on the five dozen (or reduce the cost of the eggs if I want to make the same profit).
Ask yourself why you get a better price when you buy in bulk. If you get the right answer there, you will head down a better path. Think about shipping costs, labor costs, warehousing costs, etc. |
Listen, you folks are seriously undermining my chances for a Nobel. This has to stop. I expect ENCOURAGEMENT, not a constant line of facts that go against my theory!
Get your act together, Bonnie--you and the lot of 'em!
Your words are to be "full of grace." Instead, all I hear are facts, facts, facts. Stop it. Stop it now.
You DO know there is a substantial cash prize that comes with the Nobel, right? Just remember that you just might be on my list of people to thank if you get in line with me here.
Your cooperation is appreciated. |
Obama got the Nobel peace prize.
I find you getting the Nobel economics prize to be equally deserving.
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Whether you like it or not, learn to love it, because its the best thing going today! |
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Posts: 16646
2/5/18 2:40 pm
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Dave Dorsey |
| UncleJD wrote: | | "The Wealth of Nations" is all you need to read on economics, everything else is just varying degrees of wrong. |
So there's been no legitimate evolution in the field of economics for the past 242 years? Hot take, bro. |
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2/5/18 3:42 pm
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UncleJD |
| Dave Dorsey wrote: | | UncleJD wrote: | | "The Wealth of Nations" is all you need to read on economics, everything else is just varying degrees of wrong. |
So there's been no legitimate evolution in the field of economics for the past 242 years? Hot take, bro. |
Just variations on incorrect theories, mostly Keynesian in nature. Certain laws are not improved on just because a few centuries go by. Just ask your inner theologian.  |
Golf Cart Mafia Consigliere
Posts: 3147
2/5/18 4:06 pm
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