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Originally Posted by napo_p2p
But, demand goes down when prices go up.
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No it doesn't. As far as account goes, demand doesn't go down as long as the price isn't pushed over the limit.
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Originally Posted by napo_p2p
So if there is no shortage of supply, it is not always in a company's best interest to raise prices, even when demand is up.
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With intangible items, demand is the contributing factor to the price. Not supply. "Tollerability" plays a slightly higher role than ussual.