They impose a huge export tax on rare earth elements.

Well, let's put a tax on oil that is a non revenue tax, and it basically says for the next 20 years, the price of oil will be whatever you want, 35 bucks, 40 bucks.

The price of rice rose by more than three percent.

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

I'm very interested in it and I really think that the digital non linear editing has slashed, you know, the cost now is a fraction of what it used to be.

Then auctions like eBay are another example of dynamic pricing.

And everything was rosy.

And you can imagine the other way, if the Kindle's price went down, then that would shift my demand curve to the right.

I could actually price on specific customer segments or on features I know they need.

And then they would take a loss.

Mass production reduced the price of many goods.

If you change your address, please let me know.

You would be correct that Company B was cheaper.

I believe we should try more things that have a potential to be far less expensive.

But to make it more real, if the price of an automobile had fallen as rapidly as the price of computing power, you could buy a car today for five dollars.

And this is very relevant to what's going on in the world today.

The crude oil price is falling further.

Crude oil has been falling in price.

How much will it cost you and your spacesuit to go to orbit?

(Laughter)

The first stage in a technology's advance is that it'll fall below a critical price.

It's a very, very deadly type of cancer called an angiosarcoma.

And they'll be like, well that doesn't make sense.

How could you have prices that kind of move?

And then, over time, we were able to bring down the cost significantly to about two percent of what it used to be when we started out.

Prices range from the low 30 to the high 50.

Price

And so the first of these that I will focus on the first is the price of competing products.

For any given price, it's going to lower the quantity demanded.

Let's say a guy invents a better light bulb.

The price of admission.

And so, we're in a wonderful situation with electricity in the rich world.

It has been made possible, by the way, for certain other different reasons.

The generics came in, first in Brazil and elsewhere, and the effect was just dramatic on pricing.

And then tweak your assumptions.

So you don't want to bid more than what it's really worth to you.

It's the best price that someone's willing to give you for something.

So if you expect if before you thought prices were going to be roughly constant, and now you expect them to go down, now you are gonna say wow,

He managed to pass his driving test even though he was a poor driver.

Transference

I'm going to make money that I otherwise wouldn't have made.

We've been talking about the law of demand and how if we hold all else equal, a change in price, price goes up, the quantity demanded goes down and the price goes down, the quantity demanded goes up.

That is Scenario E.

Demand for imported cars is increasing due to lower prices.

The following equivalences hold