1x minus 0.25x.

Which one is a better deal?

It's not about low cost.

If for whatever reason oil becomes scarce in a country like the United States, then the price of oil and gas would go up.

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

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.

I'm so angry about it. The oil companies are ripping me off.

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.

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

Because batteries life cycle improve a bit of improvement on energy density, which reduces the price.

And so microeconomics is how do people decide where to put those scarce resource, how do they decide where to deploy them.

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

Let's say I do come out the gate at, I don't know, 1.75.

What is the price?

I'd like to discuss pricing with you.

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

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

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

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

Because you're getting the same earnings for a lower price.

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

Price

So this is a completely comparable value to this 26,000.

But one of the things that we always tend to confuse is the difference between a revenue model and pricing.

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.

But how do you think about pricing itself?

Then auctions like eBay are another example of dynamic pricing.

Our price is considerably higher than the current market price.

Next thing I learned from Steve Jobs is

How could you have prices that kind of move?

Obviously a 6 Price to Earnings of 20 times 2013 earnings isn't as good as a 6 Price to Earnings of 2010, because earnings in the future aren't worth as much as earnings today.

It's why the purchase price is so high.

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.

There's no haggling.

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

These prices are ex works.

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

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

Equal

Equivalents

Trust me when I tell you that.

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

The down payment matters.

Dynamic pricing is exactly what it sounds like.

How does that change demand?