On Sun, 29 Oct 2006 01:18:20 -0500, snipped-for-privacy@yahoo.com (Brent P) wrote something wonderfully witty:
And the Company is 100% "FREE" to do this as a marketing strategy. A way to get more customers into the showroom. The GT500 is a specialty vehicle, not a regular production vehicle. Hence it is made in limited numbers, made for a limited audience. At its price-point it would not sell well nor be cost effective to mass produce. Ford set a MSRP on it that the free market is driving up by its demand, which if Ford wanted to maximize their profit on could ramp up production for. However, if they did they may over produce and be left with cars sitting on dealers lots that have to be discounted in order to be sold.
Ford, could constrain the end-dealers and require them to sell at MSRP. However, all that would mean is that the secondary market would re-channel the vehicles at the substantial marketup. Therefore the price marketups would still happen because of supply & demand. Don't tell me if you were able to buy one at sticker and I offered you $25k more you wouldn't re-sell it. Capitalism at its finest hour.
Ok it is rationing, you happy now?
A free market is a market where price is determined by unregulated supply and demand; the opposite is a controlled market, where supply, demand, and price are set by a government. According to a more philosophical definition, a "free" market is a market where trades are morally voluntary and therefore free from the interference of force and fraud. The notion of a free market is closely associated with laissez-faire economic philosophy, which advocates approximating this condition in the real world by mostly confining government intervention in economic matters to regulating against force and fraud among market participants. Hence, with government force limited to a defensive role, government itself does not initiate force in the marketplace beyond levying taxes in order to fund the maintenance of the free marketplace. A few extreme free market advocates oppose even taxation.
Now explain to me how the government is collusion with Ford to control the supply of GT500's?