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But what if the cost of the muffin itself went up 20%? Would people stop buying it? The shops around here don't even list prices for muffins. It could be $3 or
by tedunangst 8y ago
But what if the cost of the muffin itself went up 20%? Would people stop buying it? The shops around here don't even list prices for muffins. It could be $3 or it could be $5. Customers seem to think they can afford it either way.
- SilasX 8y agoI was referring to the case where all expenses go up 20% and claiming that most people's budgets couldn't handle it (cf. stories about not handling a $500 unexpected bill). This is the relevant case to compare to if you take tptacek's advice seriously and operate your life on it -- you can't just say "Hey, it's 80 cents, obviously people don't turn away from that". You have to ask, "what if I responded to all requests for a tip at electronic PoS this way?" Goods do fluctuate in price day-to-day, but in an uncorrelated fashion; that kind of fluctuation doesn't have the same effect since some are up and others down.