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Only in monopolistic situations or situations causing everyone to raise prices at the same time would the possibility of "just raise their prices" be workable.
by tenebrisalietum 5y ago
Only in monopolistic situations or situations causing everyone to raise prices at the same time would the possibility of "just raise their prices" be workable.
If the price gets too high people will seek alternate suppliers or do without.
Example: We pay a private company to haul trash to the dump. There's many such companies, so if my company raises it's prices, I'll switch to another. We had one company raise its prices recently and everyone switched to another. I'm not sure this company is still around.
Example: Comcast kept raising my cable TV bill. I eventually just ditched it and went Internet only. $200/month for TV isn't worth it.
- bjornsing 5y ago> If the price gets too high people will seek alternate suppliers or do without. That’s exactly the desired effect. I didn’t say raise prices to make more money. I said raise prices until incoming orders and delivery capacity align. The purpose is to get less orders.