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I would venture that sellers overwhelmingly prefer stable prices to increasing prices. Rising prices require adjustment, which requires resources, and makes you
by QuarterReptile 4y ago
I would venture that sellers overwhelmingly prefer stable prices to increasing prices. Rising prices require adjustment, which requires resources, and makes you the focus of customers' ire for what amounted to trying to keep things running the same. Meanwhile, any seller raising prices is setting up for a short- or long-term substitution effect away from their products.
- chalst 4y agoIncreasing prices in a market means increased turnover for those who sell into that market. You can easily find examples where increasing prices are worse for sellers than price stability, e.g., if increased costs eat up more than the new income or if the price increases happen in the context of a shrinking market, but as a rule price increases show that the market favours sellers over buyers.