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

And they'll be like, well that doesn't make sense.

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

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

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

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

Mass production reduced the price of many goods.

And that tells you that the book value per share is 4.

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

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

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

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

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

I need to get back at him.

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

Why?

And because housing prices went up, what did that cause?

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

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

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

Oh, you! If you go around with a face like that, I'll have to demote you back down to 'friend' again.

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

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

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 we'll do a more complicated example in the future on that.

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

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

And Sheikh Zayed did that in a fairly good way.

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

It turns out we made this pretty easy.

Thorium reactor that Nathan Myhrvold's involved in.

And that's interesting.

Devaluing Life

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

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

If other ebooks prices go up, it will probably shift our curve to the right.

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.

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

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

Now, finally,

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

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

A zero sum game means that if I win, someone else is losing by that amount.

You know what happens at that point?