Archived posting to the Leica Users Group, 2002/12/19

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Subject: RE:[Leica] Re: Leica Price increase
From: "Felix Lopez de Maturana" <fmaturana@euskalnet.net>
Date: Fri, 20 Dec 2002 00:01:42 +0100

>the demand for Leicas may be  relatively
>inelastic and they can get away with it

Doug

We were instructed in the rational economical idea of big elasticity of
luxury goods demand. A fallacy! During the crisis we've got in the last
thirty years luxury goods were less demanded but never up the level of the
income decreasings. Just a anecdote: a friend of mine, working in bank, was
in charge of consumers credits and when someone asked him a credit for a new
car, obviously, he asked for a salary declaration. He, very often, realized
the once deducted the credit monthly payment the remaining was not enaugh
for a living so he asked the custommer... He gor but coarseness... Many,
many people wish a big car even if they cannot afford it and some of them
attept to get it. In the University I was said economic laws are based on
rational men behaviour...I know now, false.

Kind regards

Felix


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