there's a theory saying that a product must raise in price at least twice in 70 years. Can this theory be turned down? Will prices ever go the decreasing direction?
I also heard about this theory, but I think it refers to very and very few products. Actually what we have is at least 500% price raise in 70 years. Prices for any product go down when an alternative for them is discovered.
Prices for an electronic gadget that has, let's say, for example, 6 months, begin to fall essentially because new, more performing products are invented. As for other products, we'll see no decrease in price, only and only increase!
Faw_Peter Wrote:there's a theory saying that a product must raise in price at least twice in 70 years. Can this theory be turned down? Will prices ever go the decreasing direction?
Yes, when the product is outdated or obsolete
or at least is not recently launched on the market. For example, now the notebooks and mobile phones are not so expensive as they were 10 years ago.
yiu made me you laugh when I read the topic. to decline? do not think will ever happen! prices can only increase! even if some products are not cheap I think we wiil notfeel the difference because other products will increase! sounds more a story than a true! :lol:
Actually, deflation (a decrease in the general price level of goods and services) did occur in Japan in the 90s: <!-- m --><a class="postlink" href="http://en.wikipedia.org/wiki/Deflation#Deflation_in_Japan">http://en.wikipedia.org/wiki/Deflation# ... n_in_Japan</a><!-- m -->
We also came close to deflation in the UK earlier this year (and Ireland did experience some deflation). People reduced their spending because they were uncertain about whether they would lose their job or have their credit cut (many did). The result was that stores routinely discounted their products by up to 70% in an attempt to sell their stock, and the cost of living briefly fell. The UK government attempted a controversial 'quantitative easing' policy (also used by the Japanese in the 90s) but fortunately this did not cause full-scale deflation in our case.
However, Riser is right in that prices usually go up ;-)
the prices can be reduced or at least will not grow .... crisis forced many companies to adopt this policy in order to sell their products and services .... it can still happen to join to a story with a happy end...who knows? time will show...
Terry Wrote:the prices can be reduced or at least will not grow .... crisis forced many companies to adopt this policy in order to sell their products and services .... it can still happen to join to a story with a happy end...who knows? time will show...
enjoy the time dear friends! According to statistical data prices fell this summer...