I understand that demand-pull type of inflation is a result of companies raising prices when consumers have more money? But why would they raise their prices and not just enjoy the fact that purchasing power of the consumers has increased? Is that a result of some sort of inherent greed that you see an opportunity to get even more money by raising prices? Why not just enjoy the fact that many people can afford your product?
In: Economics
A grocery store is going to relay a lot of companies products. The company sets a base price, division of labor is within the grocery store to mark it up for its own needs.
Depending on the original company, someone is increasing the margins. They are less concerned with how a grocery store would operate which is margins intersecting multiple different companies and products.
Basically company A doesn’t care what company B is doing. But grocery store is going to make a margin regardless.
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