Imagine I made a “dogp3player” a kind of mp3 player which only dogs could hear and I started selling it for 500$. How long before the price came down? Never. That’s how long. Because there wouldn’t much demand in the product. Without demand, there is nothing to incentivize other companies to also make the product, ergo there would be no competition. Competition drives prices down as companies compete to make sales by improving the value proposition to the customer. Lower prices often fuel additional demand and companies invest to continually make products better and cheaper in order to make more sales. High demand also allows companies to improve fabrication which can not only lead to cheaper production, it provides the financial resources needed to make a product with less materials, less waste and often less toxic materials.
from Andrew Brett Watson.com
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