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Prices increase when there is more demand for things than there is supply. If the economy collapses by 10%, then it’s likely that people will be offering deals
by ttul 7y ago
Prices increase when there is more demand for things than there is supply. If the economy collapses by 10%, then it’s likely that people will be offering deals on products to stimulate demand. That means prices going down, not up.
- ma2rten 7y agoOkay, but as companies shut down, supply chains are disrupted and employers implement measures to enact social distancing, why wouldn't supply also go down? Does the GPD going down necessarily mean that there is less demand and not less supply?