if have, cite online resources
2006-11-19 15:04:57 · 4 answers · asked by pink-cookies 2 in Social Science ➔ Economics
It's simple --- higher quality products give more pleasure to their consumers, who in turn are willing to pay a higher price to obtain them. Ie, people will pay up to the dollar amount of pleasure they receive from use of a good. -----> thus the demand curve for higher quality products will always be higher than that of lower quality ones.
On the other hand, higher quality products usually cost more to make. ---> Supply will be higher (selling at a higher price).
We can't make a conclution as to whether more HQ or LQ products are sold. But, we do know that P(HQ)>P(LQ).
Coke is higher quality than RCA - so P(Coke)>P(RCA), but Q(Coke)>Q(RCA)
On the other hand, BMW is mucher higher quality than VW so P(BMW)>P(VW), but Q(BMW)
Lastly, HQ and LQ goods are always substitutes for each other to some degree. (they should never be complements like tennis rackets and balls....)
2006-11-19 15:16:35 · answer #1 · answered by evaniax 3 · 0⤊ 0⤋
A silly question anyway. Quality product yield honor and respect from customers to producers and has a chance to make famous in the market. A product without quality end up in trash bin like rotten eggs.
2006-11-19 15:24:32 · answer #2 · answered by Sir Torex 2 · 0⤊ 0⤋
Well, my goodness, if we buy something and spend our hard-earned money, we all want it to be of best quality. Right?
2006-11-19 15:14:14 · answer #3 · answered by shycaringhelpmate 1 · 0⤊ 0⤋
consumers will love to buy the product.
2006-11-19 16:39:14 · answer #4 · answered by guillermo d 2 · 0⤊ 0⤋