Saturday, September 13, 2008

Application of Economics! (failed one)

According to economic theory, if you decide to have babies, get many.

Prams, maternity dresses, baby beds, baby-related equipment (not food) all have high costs - because they are specialised goods. They have high demand, and low supply, and hence people are willing to pay for more. In addition, it is price inelastic as it is a necessity (ok, consumers deem it is)

In addition, these baby-stuff are only usable for a few years, after which your hundreds of dollars (probably thousands) spent are gone and chucked away to some storeroom. Hence, you should have more babies, and this will allow you to reap EOS as now "unit costs are reduced", baby prams, maternity dresses can all be reused again! :D

voila!

thanks weisin for giving the idea ! :P

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