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

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

I'll agree to the terms if you lower the price.

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

And frankly, if there was a bunch of lemonade stands, everyone is trying to sell their capacity.

Mass production reduced the price of many goods.

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

So, let's say, I cut prices below Imran because I realize this increase price strategy was kind of silly.

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

And this comes back to what we talked about in the last video.

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

Why?

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

We must cut down on prices we can't compete.

We haven't had a price increase in the last five years.

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

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

And that's why we will not launch this without five to 10 million units in the first run.

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.

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

Also, the price of energy is very important to them.

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

It turns out we made this pretty easy.

If you were a monopoly, if Sal's Cupcakes were the only guy in town, he could just keep his prices high.

I need to get back at him.

You know what happens at that point?

And Sheikh Zayed did that in a fairly good way.

It is traded.

Devaluing Life

So what he would be doing at this point, by shorting, is he would actually be lowering the price at this point.

Thorium reactor that Nathan Myhrvold's involved in.

And maybe people would short Company A, and the price would move down.

So that dynamic that we've been talking about, capacity utilization falling off, because we essentially had a demand shock.

Unless you're very close and you're just funding the learning curve and it's going to get very cheap,

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.

(Laughter)

It does this in a couple of ways chasing productivity, which drives down prices and encourages us to buy more stuff.

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

And then they would take a loss.

The oil companies increased the price of gas again.

Price

The following persons passed the examination.

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.

And the cost of a transistor cycle, which is a measure of the price performance of electronics, comes down about every year.

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