Now suppose that after you take your learn parameters, if you test your hypothesis on the new set of houses, suppose you find that this is making huge errors in this prediction of the housing prices.

Gold prices are skyrocketing in the wake of financial instability.

It is traded.

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

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

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

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

No, what happened to us, Chris, is that power, it's priced off the margin.

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

So something very interesting is happening.

If you expect the future price to go up and the good or the product in question is something that you can store, well, depending on how much you expected to go up, you're probably more likely to buy now buy before the price goes up.

If you ever think about it, pricing that you negotiate yeah, we kind of have this price on paper, but that's just the starting point of the conversation.

Well, imagine we have other, say other ebooks' price goes up. WRlTING

And we saw that.

Anyway, going back to Price to Earnings, we calculated the

How could you have prices that kind of move?

Price

And that caused housing prices to go up.

Well in this case I paid 100 for the bank account.

Then auctions like eBay are another example of dynamic pricing.

And we see that the last trade here was for 2.58.

There's no haggling.

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

In particular, in Haiti, and he said I probably won't be able to control this territory anyways.

And you find other things, and you break that up, and you haul those away.

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.

See...notice I get my axes confused

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

So we know that housing prices went up.

And there is a little bit of a negative feedback, if price goes up.

That's a mistake.

It's not about low cost.

Remember, we're talking about demand, we're talking about the entire shifting of the curve.

So if the sale is twenty five percent off of x, we could say that the new price, the sale price will be x minus twenty five percent of x is equal to the sale price.

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

Or maybe the price of a....the price of a Kindle goes up, WRlTING so the price of a Kindle...let me write it this way

Even that banana that you buy at the grocery store.

So let's say it's 1.05.

Whatever the sale price is, is what I have to pay in cash.

Let's look at these cases a little bit more carefully and figure out what's going on.

And luckily for us, it is a fairly intuitive idea.

There's gonna be less of it.

Now what would happen if these things changed ?

That sounds about right. It's within the right range at least.

And you know that it's going to be 100.