Elasticity of Demand and Consumer Perception of other expenses.

[Fantom]

When the concept of the Elasticity of Demand is often discussed, the initial purchase price of a good is usually the only expense used to measure a good's change in demand relative to it's change in price.

Are there other expenses, such as maintenance/repair expenses that affect demand elasticity as well? Assuming a good is a luxury, and is sold by a firm that operates in a market that is in monopolistic competition, theoretically, if a consumer has information about maintenance and repair expenses, and has to choose between 2 goods, both have the same initial expense. However, Good A has an average maintenance expense of 10$/year, while good B has an average maintenance expense of 15$/year, wouldn't the consumer's demand for good A be more inelastic compared to their demand for good B? (Assuming this market operates in isolation, and remember in Monopolistic Competition the goods that are sold are differentiated products).

Or is the consumer's knowledge of maintenance/repair expenses generally lacking compared to their knowledge of initial expenses?

 

[Admin.]

In my years as a "Used Car Salesmen" I have seen grown men with high dollar pickups take $10,000 baths panic trading the gas guzzlers for a commuter car after gas prices lurch up 40-50 cents, those same guys are back a year or so later after gas prices retreat to buy a new gas guzzler. I took Deposits from Scores of People that desperately put down deposits and wait months to buy a Prius when for the difference in price for a less expensive and only moderately lower MPG Corolla, they could buy gas for the Corolla for several years.

My first lesson in car sales

1, Very few people that come on your car lot "Need" a new vehicle. Whatever rationale they have come up for themselves is good enough for the dealership. They just want something different. It is almost always less expensive to have new brakes installed, than it is to buy a new car.

2, figure out the buyers "thinking" and use it on them to convince him that yes that $100,000 Sports Car is something he desperately NEEDS, and he will find a way to buy it, their demand curve becomes decidedly elastic AFTER HITTING THE HOT BUTTONS.

In a more rational world we would all drive Tercels, but humans are not generally rational. And that's why Baskin-Robbins offers both Chocolate and Vanilla. And GM offers Camaros and Corvettes and Monster Trucks

 

[Admin.]

Going back to the Car Business, several times over the years I'd be sitting in my office doing used car salesmen shit, and a little old man would wonder out of the service lounge and look at the shiny new car on the Showroom floor. "Whoa Cars are $25,000 now, how can young families afford that, I bought my first house for $5000.00.....trombone noises" as I go back to looking at the new car inventory and what's coming in the pipeline.

 

[The Prowler]

When the concept of the Elasticity of Demand is often discussed, the initial purchase price of a good is usually the only expense used to measure a good's change in demand relative to it's change in price.

Are there other expenses, such as maintenance/repair expenses that affect demand elasticity as well? Assuming a good is a luxury, and is sold by a firm that operates in a market that is in monopolistic competition, theoretically, if a consumer has information about maintenance and repair expenses, and has to choose between 2 goods, both have the same initial expense. However, Good A has an average maintenance expense of 10$/year, while good B has an average maintenance expense of 15$/year, wouldn't the consumer's demand for good A be more inelastic compared to their demand for good B? (Assuming this market operates in isolation, and remember in Monopolistic Competition the goods that are sold are differentiated products).

Or is the consumer's knowledge of maintenance/repair expenses generally lacking compared to their knowledge of initial expenses?

Are you trying to get your high school diploma with night courses?

Do your own homework, you lazy goof.

GM offers Camaros and Corvettes

They do!!! I have owned both!!!!

Incredible performance for the money.

Not something a typical used car salesman should ever consider, though. With less disposable income comes less purchasing flexibility.

 

[Admin.]

Are you trying to get your high school diploma with night courses?

Do your own homework, you lazy goof.



They do!!! I have owned both!!!!

Incredible performance for the money.

Not something a typical used car salesman should ever consider, though. With less disposable income comes less purchasing flexibility.

Oh I did not know that! So why did I buy that GT3 back in the day? I must have lost my mind!

 

[The Prowler]

It is sad when people say "Back in the day." to refer to a time before they turned into a complete loser.

 

[Admin.]

It is sad when people say "Back in the day." to refer to a time before they turned into a complete loser.

Cool story bro, pics or it never happened.

 

[Fantom]

Are you trying to get your high school diploma with night courses?

No I'm just autistic.

 

[Murdy]

The basis of his statement is confusing.

No I'm just autistic.

I’m neurodivergent. His ego makes my skin crawl.

 

[Larry Loungelizard]

Sometimes I'm a liberal conservative and other times I'm a conservative liberal.

I'm easily confused on how to stand on issues.

 

[The Prowler]

Sometimes I'm a liberal conservative and other times I'm a conservative liberal.

I'm easily confused on how to stand on issues.

Whatever you do, base everything you think and do on a label.

Conform.

You dumb bitch.

Conform.

 

[Admin.]

As a fiduciary I only offer advice in my clients best interest, which I why I urge everyone to buy the biggest expensivest least practical automobile they can get financed on.

YOLO! FTW! LOL! I am so much larger than life!

 

[Admin.]

I go to the store to buy a jar of salt, I pay absolutely no attention that it's price has increased 80% since the last purchase was made. But when I see gas prices have gone up 50 cents, I lose my shit, paint my face red white and blue and storm the Capitol! Shouting No Pasaran, but in American!

 

[Larry Loungelizard]

Whatever you do, base everything you think and do on a label.

Conform.

You dumb bitch.

Conform.

No yuo.

 

[Lily]

No yuo.

He's always so angry.

 

[Admin.]

He's always so angry.

I heard his toilet training was the most traumatic 5 years of his life.

 

[The Prowler]

As a fiduciary I only offer advice in my clients best interest, which I why I urge everyone to buy the biggest expensivest least practical automobile they can get financed on.

YOLO! FTW! LOL! I am so much larger than life!

Try to keep your Meltdowns in appropriate threads, you retard!

Hahahaha!!!!

 

[Admin.]

Try to keep your Meltdowns in appropriate threads, you retard!

Hahahaha!!!!

 

[Admin.]

Try to keep your Meltdowns in appropriate threads, you retard!

Hahahaha!!!!

Did you and your well fed wife ever consider trying a sperm donor?

 

[Larry Loungelizard]

He's always so retarded.

Fixed and you're welcome.

I heard his toilet training was the most traumatic 15 years of his life.

Fixed and well, you know....

 

[The Prowler]

Fixed and you're welcome.



Fixed and well, you know....

Now there is some irony that you will not appreciate.