Is demand-pull type of inflation just the result of greed?

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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

12 Answers

Anonymous 0 Comments

Nothing stops someone else from buying your whole stock and promptly reselling the lot at a higher price.

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