Comment Re:Lower prices! (Score 1) 1091
Supply and demand are not fixed points, they're curves.
To expand on this: the supply curve represents the number of units a manufacturer is willing to sell at any given price. It's usually upward sloping: the higher the price, the more units the manufacturer would like to sell. Conversely, the demand curve represents the number of units a consumer is willing to buy at any given price. It's usually downward sloping: the lower the price, the more units the consumer would like to sell. The point where the two curves intersect is the equilibrium price/unit point for the market.
Moving a plant to El Salvador causes the supply curve to move upwards/leftwards. This results in a new equilibrium point with a lower price and more units shipped than the previous point. QED.
Stealing A Rhinoceros Should Not Be Attempted Lightly.
To expand on this: the supply curve represents the number of units a manufacturer is willing to sell at any given price. It's usually upward sloping: the higher the price, the more units the manufacturer would like to sell. Conversely, the demand curve represents the number of units a consumer is willing to buy at any given price. It's usually downward sloping: the lower the price, the more units the consumer would like to sell. The point where the two curves intersect is the equilibrium price/unit point for the market.
Moving a plant to El Salvador causes the supply curve to move upwards/leftwards. This results in a new equilibrium point with a lower price and more units shipped than the previous point. QED.
Stealing A Rhinoceros Should Not Be Attempted Lightly.
