Skip to main content

Economic Lessons - Consumer Influence on Price


Have been reflecting on some economy principles and rules for a while and here's what still doesn't came through to me in regard to Supply and Demand equilibrium and price results:

How do consumers influence the price? Say when we come to the grocery store or a super market we don't bargain, right?
Also with big purchases like furniture, expensive electronics, cars or real-estate we don't do many of those frequently enough to influence the price. There is another part of economy - B2B where "consumer" or one side of the relationship sometimes can influence the price and sometimes can't. Very often in case of businesses the procurement decisions are not made by one person and not always fair or economically efficient.  Or I am missing something here?

I just thought the Demand part of this system should "belong" to the consumer, hence the idea that the buyer should influence the equilibrium somehow. However, to me usually the consumer has only got an option to accept the already set price.

Would really appreciate any useful comment on that, because it has been something I thought about for a while now.

It appears that in different areas of economy customers have different levels of influence or no influence at all in some cases.
Here's one example Supply and Demand Pricing Rules for Property Market

Comments

Popular posts from this blog

Energy Business Case - Coal Mine in West Virginia

Situation Coal in Africa: An opportunity is available to invest in a coal mine in West Virginia. The mine’s value is less than in past years because of actual and anticipated restrictions on coal-fired power generation in the United States. However, the mine has a chance to sell its coal on contract to a public utility in West Africa. The utility is working through the World Bank for financing to build a number of coal-fired power plants. If they obtain World Bank financing, then a customer for the coal mine is assured, at least for the duration of the contracts. The power plants will employ the best current technology for burning coal, which exceeds all current air quality standards for the region. However, the power plants will not be designed to attempt carbon capture. The area of Africa the plants will serve suffers from extreme energy poverty, with some of the lowest per capita energy consumption in the world.

Overview of the Region West Africa is the westernmost region …

Wine - Castello del Poggio Moscato Provincia di Pavia

Awesome wine. Sweet with notes of pear, caramel, apricot.


Some details

Mastering The Multitasking

There is usually two distinct perspectives on multi-tasking:

1. Multitasking is counterproductive. We get distracted by multiple tasks that all get our way and fight for our scarce attention, time and resources. This leads to a common fallacy that if you do multiple activities “at a time” you are not doing good work in any of those.

2. Multitasking is a way of getting many things done in a short period of time or in a long run.

Indeed it can be either a disaster or a great helper depending on how it is used and practiced.

Most recent research shows that we don’t do multiple tasks purely in parallel or simultaneously. That means we don’t purely multi-task, but switch between tasks and execute them one at a time, but by spending very small timeframes on each task.

A good example from the history is a story about Julius Caesar capabilities in that area. Plutarch writes, “Caesar disciplined himself so far as to be able to dictate letters from on horseback, and to give directions to two w…