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
If you have a lemonade stand and you’re selling cups for $1 and your customers are signifying to you they would be happy paying $2, what are you going to do?
Hardly considered “greed” to maximize your income. It’s not greedy when a person does it or when a corporation does it, unless in doing so you create a bad experience for another human.
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