Black dolls are ‘cheaper’
July 14, 2009
‘The following picture of two dolls for sale, identical except for skin and hair color […]. Notice that the white doll is priced at $26.64 and the black doll is priced at $24.88.’ If the store claim that the white dolls sell faster is true, doesn’t the law of supply and demand dictate that the price of the white dolls would be driven down, making them cheaper?
One Comment
leave one →
SOUTH / SOUTH 
Not necessarily. With all things kept equal, if the demand for something increases, the price of that something will increase along with an increase of the quantity supplied.
It could very well be the case that, since the black dolls are not as popular, therefore, the price of those dolls would be lower.
The price for both dolls would drop over time given other factors, like consistent demand, competition, production capabilities, etc.