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| 24 Sep 2013 04:47 PM |
Basically when a price floor is enforced in a market two things happen.
1. Consumers find prices less appealing and either reduce their market buying or drop out entirely. We can relate to the NBC market in this scenario.
2. Producers, with no reasonable competition are free to produce more product for less sales. This results in a SURPLUS. This means the market is saturated with products due to over production and under purchasing.
This means that producers will experience little if any benefit and most smaller producers will make a loss.
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| 24 Sep 2013 04:49 PM |
Except there is no such thing as surplus in Roblox.
Don't give them any ideas. |
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deathginx
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| Joined: 13 Oct 2012 |
| Total Posts: 2299 |
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| 24 Sep 2013 04:51 PM |
| The surplus is too many shirts. There are hundreds of thousands that flood the market but are unnoticed. Standardised pricing refrains them from being competitive and allows major producers like kestrel to thus dominate the market. |
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| 24 Sep 2013 04:53 PM |
15 year old is a better economist than any roblox staff member
woot |
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