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Turk-
I generally agree with you, but you can't overlook the impact of pricing on demand. Demand is typically (although not always) inversely related to price- the higher the price, the lower the demand and conversely, the lower the price, the higher the demand.
The T-Bird's price was set by Ford and was not a result of the traditional economic theories of supply and demand- it's not as if the demand for the car was so great and suppply so small that it drove the price up (as is the case with CSXs or Harley's). If demand were great, Ford obviously woudn't be pulling the plug and the car would have sold no matter what the cost- like Harley's or CSX's
In this case, demand for the T-Bird was not high, which lead Ford to kill it. Would demand have been higher at a lower price? Possibly, but who knows?
Alternatively, you could say that demand was not good at that price. Maybe Ford could have designed the car differently (aluminum 427) to increase the demand at that price.
For instance, I would have bought one at $25k, but not at $40k.
That's my .02
Mike
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Last edited by Chaplin; 04-23-2003 at 10:51 AM..
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