"Daniel Prince" wrote in message
How is what you're saying any different from Walter? As he stated,
the price is determined by supply and demand. If the supply increases
in your example without any more demand, the price will go down, as
you noted. None of that has anything to do with the cost to make the
product.

But the cost to make something has EVERYTHING to do with how much an
item has to sell for the producers to make a profit.


It has everything to do with the minimum the product must sell for, but has
little to do with the maximum. If my costs are $1.00 per item, I can make a
tiny profit selling it for $1.01, but to assure I'm still in business ten
years from now and can stand the normal cycles of ups and down, I'd have to
sell it for $1.30 or maybe $1.60. But since people are willing to pay $3,
I'd sell it for that much.

I don't know why people get upset if a company makes a good profit. IMO,
they have a moral obligation to make enough to pay its debts, pay its
suppliers, and pay its employees a fair wage.