The manufacturer’s suggested retail pricing is referred to as the list price. It might be or might not be the price asked of the consumer. Mostly it depends on the product itself, the built-in profit margin, and supply and demand. A product whose demand is high in the market and it has low availability then it will sometimes sell higher than the list price, though this is less common.

Resellers buy products in bulk quantity

Virtually all products have a suggested retail or list price. It is assumed by this that the product is sold individually to the end-user or consumer. In order to be able to profit from selling the product at or below list price resellers buy products in bulk quantity and they get a substantial discount.

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Minds of most Americans have been corrupted with many economic myths by mainstream economists and so called experts, which are reinforced by the media and often repeated on the streets. These myths are false in most cases, and based on half truths in others. We constantly hear things like: inflation is caused by rising oil prices; consumption is the most important element for economic growth; government expenditures help stimulate the economy; and many others.

In this article, First in a series of two, I will explore some popular myths regarding Inflation and Energy matters. In the second article, I will write for you about common myths about Consumption.

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