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Why people so overpay for somethings?
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Posted 3/25/13 , edited 3/25/13
Like here in Canada I live somewhere, where one of the main exports are natural resources and... food sources like fish "Salmon" to be exact. I mean here salmon is dirt cheap and in some of the places you can get the salmon fish head for free.


Why is it folks oversea, and across the world pay so much for something so cheap here? I find it extremely insane on the price they charge for one piece of Sashimi. I mean Sashimi here is so cheap you can eat it until you get sick. Do you know by paying such a high price you ruin it for others.


It's the same case for eating steak in Korea, I mean at safeway here I can get a huge pack of family size AAA grade Alberta steak for 8 dollars. I'm Asian and I hate Asia because of this. The Asians themselves love ruining things for others.


Look at real estate in Hong Kong, 30% of the houses/condos are vacants and only used as a commodity. GAWD
Posted 3/25/13 , edited 3/25/13
Demand and supply


Shifts of aggregate demand

The following exogenous events would shift the aggregate demand curve to the right. As a result, the price level would go up. In addition if the time frame of analysis is the short run, so the aggregate supply curve is upward sloping rather than vertical, real output would go up; but in the long run with aggregate supply vertical at full employment, real output would remain unchanged.

Aggregate demand shifts emanating from the IS curve:

An exogenous increase in consumer spending
An exogenous increase in investment spending on physical capital
An exogenous increase in intended inventory investment
An exogenous increase in government spending on goods and services
An exogenous increase in transfer payments from the government to the people
An exogenous decrease in taxes levied
An exogenous increase in purchases of the country's exports by people in other countries
An exogenous decrease in imports from other countries

Aggregate demand shifts emanating from the LM curve:

An exogenous increase in the nominal money supply
An exogenous decrease in the demand for money supply i.e. liquidity preference

Shifts of aggregate supply

The following exogenous events would shift the short-run aggregate supply curve to the right. As a result, the price level would drop and real GDP would increase.

An exogenous decrease in the wage rate
An increase in the physical capital stock
Technological progress — improvements in our knowledge of how to transform capital and labor into output

The following events would shift the long-run aggregate supply curve to the right:

An increase in population
An increase in the physical capital stock
Technological progress

Wikipedia


Your question might also touch on comparative advantage, and consumer surplus and investor preferences so i suggest you do your research.
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Posted 3/25/13
dude I would reply with something if I can comprehend what you just said. What you said is too advanced for me, no rocket or social science please.
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Posted 3/25/13

DeckardXLeah wrote:

dude I would reply with something if I can comprehend what you just said. What you said is too advanced for me, no rocket or social science please.


LOL, it is called economics, and it isn't over your head.
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Posted 3/25/13

lordseth23 wrote:


DeckardXLeah wrote:

dude I would reply with something if I can comprehend what you just said. What you said is too advanced for me, no rocket or social science please.


LOL, it is called economics, and it isn't over your head.




O M G now math?
Posted 3/25/13

DeckardXLeah wrote:

O M G now math?


Is this your homework?
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Posted 3/25/13 , edited 3/25/13

Sociopa wrote:


DeckardXLeah wrote:

O M G now math?


Is this your homework?




My hands haven't been used for "homework" for some time now, these days they are only for writing reports.


talk to you folks when I'm at work.
Posted 3/25/13 , edited 3/25/13

DeckardXLeah wrote:

My hands haven't been used for "homework" for some time now, these days they are only for writing reports.

talk to you folks when I'm at work.


Well there are so many possibe answers that you need to put together but for now.

Break things down for yourself:

First, How many fish mongers do you have? A lot or a little and then think about why they'd charge low prices.

Second, What do you think is the main advantages of having something that can't run out unless a disaster took place and what makes them an asset to your country?

Third, think about why you'd export this asset you specialize in, will you try to make more money from it if it's possible to help your country?

Forth, why would another country that does not specialize in producing that product pay a lot to get this product? Think about the demand vs the supply to their country.

Fifth, what determines demand price elasticity? Think about where you think it comes under below for that specific product
Definition:


Factors affecting this:


Once you get the thought process going you'll find it easier to answer your own questions

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Posted 3/25/13
Sociopa probably has the most thorough reply you're going to get. I think it's only a little silly that you haven't done homework for so long but still do not know the basic of economics, but sometimes these things happen if you don't really care to think about them. I had a friend who was 19 and still didn't know what an ATM was...and those are on every corner.
Simply speaking when your country has a lot of something it is easy to come by and therefore you do not pay a lot for it. If however your country does not have a lot of something and it is increasingly rare, you pay more because there is less of it. Supply of all items are not consistent throughout the world.
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22 / M / Delaware
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Posted 3/25/13
is this a serious question?
Posted 3/25/13

tehstud wrote:

is this a serious question?


lordseth: Why?
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22 / M / Delaware
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Posted 3/25/13

Sociopa wrote:


tehstud wrote:

is this a serious question?


lordseth: Why?


lordseth: kill me
Posted 3/25/13 , edited 3/26/13



lordseth : why?
Wihl 
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Posted 3/25/13
costs of shipping

costs of government tariffs usually for protection of local markets
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Posted 3/25/13
Because people believe they need things that are overpriced. For example, I just paid 160 dollars for a longchamp bag a week ago. Does a bag need to cost that much? no. Do I need a 160 dollar bag? no. Did I want it? yes. Why? because there was a perceive need that I felt compelled to satisfy.
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