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News reports shortages and demand/price

Topics: Problems: News reports shortages and demand/price

dconklin58

Monday, September 29, 2014 - 03:20 pm Click here to edit this post
News flash came up saying:

"You are advised to have some reserve materials for your army including: 5.000 Trucks (I have 8,414), 500.000 Military Supply products (I have 1,092,207), 500.000 tons of Gasoline (I have 762,112) and 500.000 tons of Aircraft Fuel (1,369,682)."

My added parenthetical notes indicate that I have plenty of all of them.
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Shouldn't the prices of the various goods change by how much supply there is relative to demand?

For instance, I noted that the world demand for boats as at 52k, but there were 169 corps producing 589k of them. Prices should have dropped like a rock or businesses would have lots of expenses and little or no income and they'd go bankrupt.

Rage Fury

Monday, September 29, 2014 - 09:57 pm Click here to edit this post
Could be those products have reached the bottom and will not drop further. If you click the graphic adjacent to the Product price, you will see several previous months of pricing. A flat-line will tell you if it is at bottom or not. If not, then when the game catches up, you will see another price drop. Assuming the supply remains above the demand.

Rage Fury

Monday, September 29, 2014 - 10:02 pm Click here to edit this post
Yes corporations will bankrupt should this state remain unchanged for to long. That said, private Corporations can remain in business if the State or Enterprise keeps funneling cash to them. However, if neither the State or the Enterprise can get the Cash, the Corp then depends on loans. If the loans reach about 120 billion SC$, the Corp is doomed soon after should the Enterprise or State fail to intervene.

dconklin58

Monday, September 29, 2014 - 10:39 pm Click here to edit this post
>should this state remain unchanged for to long.

The 169 plants producing boats were world-wide.

Rage Fury

Tuesday, September 30, 2014 - 07:54 am Click here to edit this post
If you look at their history, you will see that it used to be 171. Some did in fact close already. Click those green and red graphics wherever they appear, next to the data-points and you can see what history we are allowed.
Assuming they are not all making a profit, they are not all going to go belly-up for reasons I have already mentioned and certainly not all at once. However if you click "Buy Corporation that produces Boats", you will see that some have made varying profits last month. Those likely won't be closing, by themselves, any time soon.

Andy

Sunday, October 5, 2014 - 12:58 pm Click here to edit this post
When products reach bottom price, they indeed stay there with that price, waiting for better times to come but may also bankrupt.

The same with very high shortages, the price can reach the top and will stay at that level.

we would have liked to increase the space between the top and the bottom but need players to react to these situations and fix the market.

Countries without president are doing so to some extent.


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