Originally Posted by
jlivengo
Continue...feel free to explain.
My thought was that by manipulating supply in E-, they are increasing demand for E+. Basic upsell.
Right. What they're "manipulating" is supply, not demand.
The goods have a positive cross elasticity of demand. Whoopdidoo. Lots of things are like that.
Procter & Gamble produces 100 different mixtures of sodium lauryl sulfate and fragrance, which we call 'shampoo'. No one accuses them of evilly "manipulating demand" when they up the price of Head & Shoulders.