Actually, this is precisely how the equilibrium price point is reached since
it's the intersection of the demand and supply curves. We do remember the supply
curve, don't we? Reagan was in love with it. I think you're forgetting that
supply and demand are elastic. I can get you all the demand you could use for
Lexus sedans at $1/unit, I just don't think you'll see much supply.
<<I think less demand lead to higher prices, which lead to even less
demand, etc. which is opposite to the way economics is supposed to
work. Now, I don't know squat about econ, but increases in demand I
think are supposed to raise prices, and a loss of demand is supposed to lower
prices. >>
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