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I agree they would most likely lower their prices so they always balance out. But then you said if they wanted to keep it 1,000, they should offer more benefits along with the diamond. What would...

Why would averaging the prices of the two businesses not be just as inaccurate about the final price? If biz 1 is offering at 1,000 and biz 2 is offering at 900, averaging the prices makes it seem...

All right, but where did you get the 100 from in your equation?

Why does printing more money cause inflation? The explanation I always get is that "printing more money doesn't increase supply of goods & services; it just spreads the money supply over the existing...