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The fallacy of assuming constant demand More | Login | Reply

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Price doesn't affect demand (Score:1)

by tomhukins (4457) on 2007.06.07 11:19 (#55498) Journal

You make a good argument, but decreasing the cost of using something increases the quantity demanded: it doesn't affect demand itself. In terms of the pictures economists draw, moving the supply curve doesn't move the demand curve, but it does move the point both curves intersect (quantity demanded). For example, I tried to hook WWW::Selenium into Test::Harness a while ago but gave up as it looked like it would hurt too much. I suspect I could do what I wanted more easily with TAP::Parser. However, increasing the quantity demanded now increases awareness (list discussion, journal entries, documentation) which may increase demand in the long term.

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- Price doesn't affect the demand curve (Score:2)
  
  by schwern (1528)
  
  I think we're in agreement, but my wording was a imprecise. "Demand" here can mean two things. The total "demand curve" over all possible prices and the "current demand" which is the quantity demanded at the current price. Its also interesting to note that a free software release doesn't really have a supply curve... not that I can figure anyway.
  
  Price doesn't immediately affect the demand curve. It does effect the current demand. And yes, I agree that increasing the current demand can eventually alter

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