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The last (upward) arrow in the chart does not make sense. Why would people buy more goods: as prices go up, they can buy less and less goods.
by lostmsu 5y ago
The last (upward) arrow in the chart does not make sense. Why would people buy more goods: as prices go up, they can buy less and less goods.
- srhngpr 5y agoMy guess would be to hoard goods while they can since the prices continue going up.
- gruez 5y agoYou might be right. In that case you might be able to cut the loop short by changing "line of ships grows..." to point to "trucks can't pick up containers...". In that case it's still a death spiral situation, but it's more similar to something like traffic jams, where throughput drops when there's bumper to bumper traffic.
- secondaryacct 5y agoSo you buy less and less gas for your car as you hear CNN loop on gas price rising due to supply issue ? Abd what about toys when everyone is talking about saving Christmas ? You'll make triple sure you have one, maybe even buy several from several sources. I've seen myself do that with difficult to import goods, and price is always a lower factor than need. Price would eventually push me out, but there s a twilight zone when it's just right to panic buy stuff that werent supposed to be rare.
- manquer 5y agoI agree, also most people have finite and limited disposable income, no matter want/need most people can only consume so many items especially when prices are increasing.