Lunaman
Senior Forumite
Posts: 3,974
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Post by Lunaman on Dec 2, 2012 2:19:48 GMT
You're welcome, thanks for the praise :lol: , and welcome to the forum!
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Post by Kataphractos on Dec 2, 2012 20:50:53 GMT
That isn't how economics works, exactly. If it did, then capitalism would not work. Prices go down as demand and production increases, and I'm relatively certain that opportunity cost factors in somewhere. Even when Hanwei lost a majority of their production floor in a fire a couple years ago, their prices didn't fluctuate all that much, if at all, AFAIK.
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Deleted
Deleted Member
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Post by Deleted on Dec 2, 2012 23:28:22 GMT
It's basically economies of scale that make high demand crappy katana even cheaper. Because there is a big marjet and huge demand, manufacturers can confidently buy inferior materials such as low grade 1045 steel for blades, zinc-alloy for fittings, cheap cotton for wrapping in bulk, making it much cheaper for outlay of materials. Making a lot of the same thing is easier on a production line, R&D, tooling and other associated costs are recovered sooner. Since many katana (especially the cheaper ones) are all cookie cutter clones, all identical except for fittings, it's easier to make a 'range' of them by changing the fittings and hilt wrap colour!
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Post by Tater on Dec 3, 2012 0:59:55 GMT
Yes, and as I said earlier, I was going off what my economics text book says about the laws of demand and supply. I failed to read the part where many other factors also go into price.
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ChrisA
Member
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Post by ChrisA on Dec 3, 2012 20:54:12 GMT
What Supply and Demand actually addresses is: If there are 100 swords and 200 people want those swords prices will go up. It is a static statement and true in it's simple form.
However, if 200 people want those 100 swords, 3 other companies will make swords to cash in on that demand and there will be 300 swords available. Now supply is bigger than demand. Prices will then plummet.
And on and on it goes until the market reaches a balance between supply and demand.
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