And, in fact, you can't even be sure that the demand curve is downward sloping.
The only reason we assumed that the demand curve is downward sloping is that we
assumed things like "if Freddy is willing to buy a pair of sneakers for $130,
he is certainly willing to buy those same sneakers for $20." Right? Ha! Not if
Freddy is an American teenager! American teenagers would not be caught dead in
$20 sneakers. It's, like, um, the death penalty? if you are wearing sneakers?
that only cost $20 a pair? in school?
I'm not joking around here: prices send signals. Movies in my town cost, I
think, $11. Criminy. There used to be a movie theatre that had movies for $3.
Did anyone go there? I DON'T THINK SO. It's obviously just a dumping ground for
lousy movies. Somebody is now at the bottom of the East River with $20.00
cement sneakers because they dared to tell the consumer which movies the
industry thought were lousy.
"Camels and Rubber Duckies" (on the Pricing of Software)