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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Because there are people willing and able to buy a larger number products than the number of products that are available, the products have to be rationed.
A way to ration the products is to increase the price, then fewer products are sold as you raise the price. If the price is too high, than there are many of the products left on the shelf. If the price is too low, than all the products are sold out or there are very long lines where the products are available at the low price.
Another reason prices go up is panic buying. Sometimes people will panic and stock up on something in fear that the product may not be available in the future. Increasing the price may discourage panic buying.
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