For economists (and business) students it isn’t a graphing calculator but same thing with HP12c (financial calculator). But it is only like 40 dollars.
Essentially, it’s because it’s a monopolistic/anti-competitive relationship, so the producer is able to charge much more than if it were competitive. The producer seeks to maximize profits, and the schools enable them by effectively controlling the market.
You only need a graphing calculator because you’re not allowed to use wolfram alpha, desmos, or Matlab. Since you’re mandated to use graphing calculators, (sometimes even specific models) there’s no incentive to make them cheaper or better since you need to buy them anyway.
Yep, graphing calculators are a forced necessity for school, therefore they can charge anything they want and people will still buy them. This kind of artificial demand causes extreme price inelasticity and is capitalism at its worst.
Same deal with university books, you are forced to buy them so they cost hundreds of dollars, when they could easily be sold at a profit for a quarter of the cost.
Yup, free market only incentives competition when it’s actually free. Demand monopolys are just as bad as supply ones.
And why there’s a “new” version every year that just moves things around…
But there aren’t ‘new’ graphing calculators being required and they don’t get worn out that easily. There’s a relatively stable amount of people who need one at any given time, so honestly I’d have expected the second hand market to have crashed the market more than it has. There should honestly be multiple times over more graphing calculators in circulation than there is a need for them.
The incentive Is supposed to be competition among manufacturers, something is preventing that
Schools have lists of approved models for standardized test taking. If students (the largest market) can’t use your calculator, making one is probably not going to be profitable.
Case in point: I just looked for graphing calculators on aliexpress and they’re like 10 bucks
When I was in school, it was always specific models. They had to limit it to one brand and like 2-3 known good models to prevent the ones that could solve equations.
So there’s no reason for TI to ever lower prices.
Its okay, as I neoclassical economist, I know exactly how to fix this issue.
Tax breaks for the rich.
Ask me to solve any economic problem, I have the answers.
