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anigbrowlyesterday at 8:17 PM1 replyview on HN

Cut the price, this is basic microeconomics.


Replies

slaymaker1907yesterday at 8:43 PM

That is not what they should do according to microeconomics because luxury goods are Veblen goods. Decreasing price would lower demand, at least until they lowered it enough that it was no longer a Veblen good.

Basic microeconomics is just that: basic and thus an oversimplification.