Friday, February 08, 2013

Change in Preferences

The demand curve will shift to the left when consumers tastes and preferences change.  People prefer email for many of their correspondence now.  The supply curve will shift to the right when technology improves.  With cell phones that are computers, the price of mail delivery falls.  The post office is battling a change in demand and supply.  It's funny, not ha ha, that the monopoly power came from a change in preferences.

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