Re: O/T Concerning Gas Pricing

The distributor told the grocery store owner that he would lower the
price of the eggs if the store would start buying again. The grocery
store owner said, "I don't have room for more eggs. The customers are
only buy 2 or 3 eggs at a time". "Now if you were to drop the price
of eggs back down to the original price, the customers would start
buying by the dozen again".

The premise is wrong to begin with. The inventory capability of the
market hasn't changed, and his customers are still buying the same
amount of eggs over a period of time, therefore he will still buy the
same amount of eggs over the same period of time.

The only way to lower the price is to reduce demand by buying less eggs
over the same period of time.

.

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