Why prices go up during supply shortage

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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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21 Answers

Anonymous 0 Comments

Imagine you bought 100 tvs expecting to sell over christmas. But there’s less money, everybody is going on sale, and you have to sell for less than you expected.

You eat the loss. You can’t say “I bought it expensive, you guys gotta pay my price.” nobody will care about your loss.

Same happens in reverse if there’s a sudden lack of stuff, but you have it, and everywhere else the price went up. You raise your own prices and gain more. And if somebody goes “but you bought it cheaper”, well, why should you care? Would they if it was your loss?

Taking the risk to have a stock means being open to losses as well as gains, and you take what you can get.

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