Why are teardrops so expensive?

wmoses wrote:

Major Dad wrote:

A few points from an Economics teacher...
....
Of course, these are generalities and individual results may vary

You know, I am aware of all your points, and I agree with them because they are true as far as I was taught back in university economics.

But that is not my point.

Consider this - statutes are there to tell us what we can do according to the law. Morals are there to tell us what we are should do.

Now take that inter-relationship and consider the parallels with regard to to economics and greed.

That is all I am prepared to say on this.

Robert the Aussie makes a good observation - the teardrops manage to be priced lower (appropriately?) Down Under. I would wager to say it is similar in Canada but I might be wrong given it proximity to us here. I don't think that we can be so presumptuous to say that those two countries are not familiar with the tenets of economics.

Economics aside, if we do not stifle our consciences, we can allow that in the marketplace in which we live greed is a factor.

As for the teardops - I think they are pretty cool (thanks to bakerkids who shared her beautiful picture - makes me feel like camping right now! :)) and her thoughts on why it works for them, and for many others who like small (that definitely has its advantages).

The market (as long as market failure is not present) sets the price. In that context, if you want to say the supplier is "greedy" for selling a product for what the market will bear, then the consumer is just as greedy for trying to purchase something for less than the market price. I see no moral issues here; we're talking about travel trailers (wants), not life-saving medications (needs). Consumers and suppliers are both motivated by self-interest, and those competing interests in the marketplace are what sets price and production levels. It is tempting to ascribe "greed" to this process when a market doesn't produce something for the prices you want, but I can assure you that I never called myself "greedy" when I bought my trailer for an incredibly low price in 2008!

IOW, understanding how demand, supply, and pricing works helps consumers make better choices (in this case teardrop trailers), and I certainly support that!