What i don’t understand that why the price goes up for finished products, it is already made, raw materials used and manufacturing is paid.
If the store already has 10 TVs in the store, why the price go up?
If you have a given amount of packaged bread already in the store why the price goes up?
Edit1: Lightbulb from many: Restock… You need to restock on current price, if you don’t follow the price you gonna lose money
However the “willing to pay” argument is kind of maddening, because with basic necessities like food “willing to pay” is reversed, controlled by seller and transformed to “have to pay and going to do so”
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You are confused because you think that the price of an item is determined by the cost of that item to produce, it’s not. Prices are and always have been determined by the rules of supply and demand.
The quantity of goods available for sale (supply) and the number of customers out there for those goods (demand) that’s what determines prices. If the price determined by supply and demand is less than the cost to produce the item, it’s not profitable and no one will make it. If it is profitable then people will make it.
The key here is that cost to produce sets the minimum price, but there’s no maximum imposed by cost. If I can make something for $1 and someone else is willing to pay $100 that’s just good for me.
Prices are set by supply and demand. During a supply shortage prices will increase even if the underlying costs don’t increase.
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