[setr]

But we can also pay for good, or expensive pizza, and we will find the box remains the same. If it were simply consumer preferences, then we’d expect this to no longer be the case as we enter more price-agnostic tiers of consumerism.

Unless of course no one cares about the box, so the increased cost literally does nothing, but that just means the improved boxes are not actually an improvement.

More specifically, don’t look at the market as a single unit, but as various buckets with various equilibriums. We expect Mercedes to target the equilibrium point… but not of the entire market (that’s what Jettas and Camrys are for) but rather their niche.