<p><BR/>Replying to:<BR/><DIV CLASS='Discussion_PostQuote'>Economics 101 -- demand is a relationship between price and quantity, a curve. While it is true that demand curves generally show a increasing quantity sold with decreasing price, it is not demand itself that increases as price decreases. http://www.investopedia.com/university/economics/economics3.aspThe problem in the launch business is in fact largely lack of demand. There are few launches than in the past, in large part because satellites have become more reliable with longer lifetimes, hence less need for replacements. Profit margins in the lauch business are generally poor because of lack of demand and the concurrent lack of volume, combined with prices that don't carry very much profit. Rocketeers have not failed on the supply side. If you want to buy a launch, you can most certainly get one. You may not like the price, but neither do the rocketeers.There is not overwhelming demand for access to space. There are simply a lot of people who would like cheap access. They would also like cheap airline tickets. And cheap oil. And cheap chewing gum.It is certainly true that a cheaper means of getting to orbit would find commercial success, if it is also reliable. Reliability is more important that the price, at least for the current crop of expensive and valuable cargoes. <br />Posted by DrRocket</DIV></p><p>From Wikpedia<br /><span class="mw-headline">Demand curve shifts</span></p><dl><dd><div class="noprint relarticle mainarticle"><em>Main article:
Demand curve</em></div></dd></dl><div class="thumb tleft"><div class="thumbinner" style="width:202px">
<img class="thumbimage" src="http://upload.wikimedia.org/wikipedia/en/thumb/e/eb/Supply-demand-right-shift-demand.svg/200px-Supply-demand-right-shift-demand.svg.png" border="0" alt="An out-ward or right-ward shift in demand increases both equilibrium price and quantity" width="200" height="200" /> <div class="thumbcaption"><div class="magnify">
<img src="http://en.wikipedia.org/skins-1.5/common/images/magnify-clip.png" alt="" width="15" height="11" /></div>An out-ward or right-ward shift in demand increases both equilibrium price and quantity</div></div></div><p>When consumers increase the quantity demanded <em>at a given price</em>, it is referred to as an <em>increase in demand</em>. Increased demand can be represented on the graph as the curve being shifted outward. At each price point, a greater quantity is demanded, as from the initial curve D1 to the new curve D2. More people wanting coffee is an example. In the diagram, this raises the equilibrium price from P1 to the higher P2. This raises the equilibrium quantity from Q1 to the higher Q2. A movement along the curve is described as a "change in the quantity demanded" to distinguish it from a "change in demand," that is, a shift of the curve. In the example above, there has been an <em>increase</em> in demand which has caused an increase in (equilibrium) quantity. The increase in demand could also come from changing tastes, incomes, product information, fashions, and so forth.</p><p>If the <em>demand decreases</em>, then the opposite happens: an inward shift of the curve. If the demand starts at D2, and <em>decreases</em> to D1, the price will decrease, and the quantity will decrease. This is an effect of demand changing. The quantity supplied at each price is the same as before the demand shift (at both Q1 and Q2). The equilibrium quantity, price and demand are different. At each point, a greater amount is demanded (when there is a shift from D1 to D2).</p><p><a id="Supply_curve_shifts" name="Supply_curve_shifts" title="Supply_curve_shifts"></a></p><h3><span class="mw-headline">Supply curve shifts</span></h3><div class="thumb tright"><div class="thumbinner" style="width:202px">
<img class="thumbimage" src="http://upload.wikimedia.org/wikipedia/en/thumb/7/79/Supply-demand-right-shift-supply.svg/200px-Supply-demand-right-shift-supply.svg.png" border="0" alt="An out-ward or right-ward shift in supply reduces equilibrium price but increases quantity" width="200" height="200" /> <div class="thumbcaption"><div class="magnify">
<img src="http://en.wikipedia.org/skins-1.5/common/images/magnify-clip.png" alt="" width="15" height="11" /></div>An out-ward or right-ward shift in supply reduces equilibrium price but increases quantity</div></div></div><p>When the suppliers' costs change for a given output, the supply curve shifts in the same direction. For example, assume that someone invents a better way of growing
wheat so that the cost of wheat that can be grown for a given quantity will decrease. Otherwise stated, producers will be willing to supply more wheat at every price and this shifts the supply curve S1 outward, to S2—an <em>increase in supply</em>. This increase in supply causes the equilibrium price to decrease from P1 to P2. The equilibrium quantity increases from Q1 to Q2 as the quantity demanded increases at the new lower prices. In a supply curve shift, the price and the quantity move in opposite directions.</p><p>If the quantity supplied <em>decreases</em> at a given price, the opposite happens. If the supply curve starts at S2, and shifts inward to S1, the equilibrium price will increase, and the quantity will decrease. This is an effect of supply changing. The quantity demanded at each price is the same as before the supply shift (at both Q1 and Q2). The equilibrium quantity, price and <em>supply</em> changed.</p><p>When there is a change in supply or demand, there are four possible movements. The demand curve can move inward or outward. The supply curve can also move inward or outward.</p>
http://en.wikipedia.org/wiki/Image:Supply-and-demand.svg<p>The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with
purchasing power at each price (demand D). The graph depicts an increase in demand from D<sub>1</sub> to D<sub>2</sub>, along with a consequent increase in price and quantity Q sold of the product.</p><p> </p><p>As I said when the price comes down the demand goes up. The problem with the current market is that we are to the far side of the curves at the moment. Bottom line, rockets alone are not the answer to this eqation, they are why we are and will remain to the far right on the curve as long as we are tied to them. Right now "ANY" money we spend on redeveloping pure rocket systems is waste of valuable resources that should be spent in other developmental areas.</p> <div class="Discussion_UserSignature"> <p> </p><p>"I am therefore I think" </p><p>"The only thing "I HAVE TO DO!!" is die, in everything else I have freewill" Brian P. Slee</p> </div>
A video made by me about space and the loneliness in the universe
Facebook
Twitter
Instagram