11-01-2011, 10:10 AM"Should I keep back my opinions at such a time, through fear of giving offense, I should consider myself as guilty of treason towards my country, and of an act of disloyalty toward the Majesty of Heaven, which I revere above all earthly kings..." Patrick Henry
- Join Date
- Oct 2009
- Southwest Michigan (in Exile)
11-01-2011, 11:28 AMSolve a man's problem with violence and help him for a day. Teach a man how to solve his problems with violence, help him for a lifetime - Belkar Bitterleaf
11-04-2011, 04:50 AM
You are 100% correct that some consumers may pay more because they have a brand loyalty or affinity for Coca-Cola. However, for every consumer that chooses to give up whatever other goods might have been purchased in lieu of paying more for Coke brand, the demand for other, lower priced soft-drinks drops by that consumers demand. In other words, the more of the relatively wealthy who buy Coke because they want it and can afford it, the cheaper the other brands get for those who can't afford to make a "Coke or Nothing" opportunity choice. If this class of wealthier Coke drinkers didn't exist, then all demand for soft drinks would fall upon the lower priced supplier driving up the price. So, if Coke or other "name brands" weren't pricing their commodities higher then all demand would fall on the "bargain" products, out pricing the poorer people who need those lower prices.
That's why competition is good for the poor, and competition cannot exist in a state or other centrally planned economy, because in a planned economy, the people who run the biggest businesses end up running the planners."In England a king hath little more to do than to make war and give away places; which in plain terms, is to impoverish the nation and set it together by the ears. A pretty business indeed for a man to be allowed eight hundred thousand sterling a year for, and worshipped into the bargain! Of more worth is one honest man to society and in the sight of God, than all the crowned ruffians that ever lived."
—Thomas Paine, Common Sense
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