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

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

The price of everything increased.

The price of rice rose by more than three percent.

As expected, the price of imported goods rose.

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.

It is a complement. WRlTING

You're gonna make more money if a crop fails.

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

Mid to highend bottle of...

You'd end up with a negative utility.

Certainly more than a pass.

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

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

And we saw that.

The other thing we assumed that's being held constant is price expectations for our good.

If they made their bows of it, we make our gun stocks of it.

The second is that the journals started ratcheting up the price of subscriptions to many of their journals. So those two things came sort of two ahead where it's become almost the theater of the absurd with the amount that some journals want libraries to pay to subscribe to the journal.

They impose a huge export tax on rare earth elements.

It turns out we made this pretty easy.

We have talked a little bit about the law of demand which tells us that, all else equal, if we raise the price of a product, then the quantity demanded for that product will go down. ..common sense.

If manufacturing was automated it would create abundance and along with it remove the need for prices.

Expectations... Expectations... of future prices. So let's say...

And the other?

And that caused housing prices to go up.

Then auctions like eBay are another example of dynamic pricing.

Mass production reduced the price of many goods.

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

With this price, your product would not be competitive in the Japanese market.

Now, we have this whole securitization,

What do I mean by that?

If x is any larger number than the number I'm solving for, then the sale price is going to be more than fifty and I won't be able to afford it.

So now expect the future price to go up. What's going to happen?

As oil prices go up, energy patents go up.

I can go and sell it in the NASDAQ.

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.

Even that banana that you buy at the grocery store.

(Laughter)

Many of the German companies, for instance, believe that they are really producing a high quality product at a good price, so they are very competitive.

Price

Commodity tax is not included in the price.

Thorium reactor that Nathan Myhrvold's involved in.

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

If this thing changes, this is going to move the curve.

But I think you get the point.