Interesting theory

I got this in an e-mail from a friend from school. I thought I'd share it with you.

Subject: Will this control Inflation

Nice Logic - It May Work !!

A man eats two eggs each morning for breakfast. When he goes to the Kiranastore he pays Rs. 12 a dozen. Since a dozen eggs won't last a week henormally buys two dozens at a time. One day while buying eggs he noticesthat the price has risen to Rs. 16. The next time he buys groceries, eggsare Rs. 22 a dozen.

When asked to explain the price of eggs the store owner says, 'The pricehas gone up and I have to raise my price accordingly'. This store buys 100dozen eggs a day. He checked around for a better price and all thedistributors have raised their prices. The distributors have begun to buyfrom the huge egg farms. The small egg farms have been driven out ofbusiness. The huge egg farms sell 100,000 dozen eggs a day todistributors. With no competition, they can set the price as they see fit.The distributors then have to raise their prices to the grocery stores. And on and on and on.

As the man kept buying eggs the price kept going up. He saw the big eggtrucks delivering 100 dozen eggs each day. Nothing changed there. Hechecked out the huge egg farms and found they were selling 100,000 dozeneggs to the distributors daily. Nothing had changed but the price of eggs.

Then week before Diwali the price of eggs shot up to Rs. 40 a dozen. Againhe asked the grocery owner why and was told, 'Cakes and baking for theholiday'. The huge egg farmers know there will be a lot of baking going onand more eggs will be used. Hence, the price of eggs goes up. Expect thesame thing at Christmas and other times when family cooking, baking, etc.happen.

This pattern continues until the price of eggs is Rs. 60 a dozen. The mansays, ' There must be something we can do about the price of eggs'.

He starts talking to all the people in his town and they decide to stopbuying eggs. This didn't work because everyone needed eggs.

Finally, the man suggested only buying what you need. He ate 2 eggs a day.On the way home from work he would stop at the grocery and buy two eggs.Everyone in town started buying 2 or 3 eggs a day.The grocery store owner began complaining that he had too many eggs in hiscooler. He told the distributor that he didn't need any eggs.Maybe wouldn't need any all week.

The distributor had eggs piling up at his warehouse. He told the huge eggfarms that he didn't have any room for eggs would not need any for at leasttwo weeks.

At the egg farm, the chickens just kept on laying eggs. To relieve thepressure, the huge egg farm told the distributor that they could buy theeggs at a lower price.

The distributor said, ' I don't have the room for the %$&^*&% eggs even ifthey were free'. The distributor told the grocery store owner that he would lower the price of the eggs if the store would start buying again.

The grocery store owner said, 'I don't have room for more eggs. Thecustomers are only buying 2 or 3 eggs at a time. Now if you were to dropthe price of eggs back down to the original price, the customerswould start buying by the dozen again'.

The distributors sent that proposal to the huge egg farmers but the egg farmers liked the price they were getting for their eggs but, thosechickens just kept on laying. Finally, the egg farmers lowered theprice of their eggs. But only a few paisa.

The customers still bought 2 or 3 eggs at a time. They said, 'when theprice of eggs gets down to where it was before, we will start buying bythe dozen.'

Slowly the price of eggs started dropping. The distributors had to slashtheir prices to make room for the eggs coming from the egg farmers.

The egg farmers cut their prices because the distributors wouldn't buy at a higher price than they were selling eggs for. Anyway, they had fullwarehouses and wouldn't need eggs for quite a while.

And those chickens kept on laying.

Eventually, the egg farmers cut their prices because they were throwingaway eggs they couldn't sell.

The distributors started buying again because the eggs were priced to wherethe stores could afford to sell them at the lower price.

And the customers starting buying by the dozen again.

Now, transpose this analogy to the gasoline industry.

What if everyone only bought Rs 200.00 worth of Petrol each time theypulled to the pump? The dealer's tanks would stay semi full all the time.The dealers wouldn't have room for the gas coming from the huge tanks. Thetank farms wouldn't have room for the petrol coming from the refiningplants. And the refining plants wouldn't have room for the oil being offloaded from the huge tankers coming from the oil fiends.

Just Rs 200.00 each time you buy gas. Don't fill up the tank of your car.You may have to stop for gas twice a week, but the price should come down.

Think about it.

Also, don't buy anything else at the fuel station; don't give them any moreof your hard earned money than what you spend on gas, until the prices comedown...'

...just think of this concept for a while.

..................please pass this concept around....reaching out to the masses ...the world .....

Best Regards

Anwar