It will be 100 in two years. It will go below 100.

Then auctions like eBay are another example of dynamic pricing.

Price

And these were all kind of up selling based on aspirations and the quality and features of the product increase as well.

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

Another major revolution the communications revolution.

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.

Par value

Redemption

Present value

Present values

Future value

Dr. Price?

Wenneck, Price, Garner.

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

But 50 years ago, 1 CHF was worth 3 times as much as it is today.

Your dad, the president...

How could you have prices that kind of move?

You would be correct that Company B was cheaper.

Alright?

There's a basic, profound acceleration of this evolutionary process.

That is Scenario E.

It turns out we made this pretty easy.

It's not about low cost.

We went from aggregate capacity from one million with my original factory, to now 3.4 million.

But in this reality with competition, there's this huge incentive that, when you have extra capacity, especially if you have a lot of extra capacity, there's this huge incentive to lower prices so that you can utilize that capacity.

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

And finally, American families also pay a price for oil.

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.

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

Our price is considerably higher than the current market price.

See...notice I get my axes confused

And that caused housing prices to go up.

What are the challenges in getting value for money as well as value for many?

Because to get that banana to your store, you need to use some gasoline.

The Price of Competing Products. WRTlNG

So for example, let's think about Scenario, a Scenario 2.

Or, another way to think about it is the cost of production.

Now let's think about related goods.

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

We just divide both sides by 0.75.

Well, I won't define the vehicle for you, but I will define the cost for you.