How and when do business adjust for inflation?
In: Economics
They don’t adjust for “inflation”.
Inflation is general rise in prices. Now some businesses might easily be able to pass prices onto consumers. These companies adjust prices as and when their input prices go up. Inflation is really not a bother to these people
Then there are companies who are in very competitive spaces. These cannot pass prices onto customers as competitors might not thus undercutting them. These folks are very sensitive to inflation.
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