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yes, but the loan you took out to renovate the stores, buy new trucks, install new point of sale is risky to the lender, so it does change and increase the cost

yes, but the loan you took out to renovate the stores, buy new trucks, install new point of sale is risky to the lender, so it does change and increase the cost of providing those goods. Also, you say "pretty inelastic" - you seem to be accepting that food demand is elastic, just less so than other goods. Unsurprisingly, it turns out it depends what type of food article: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2804646/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2804646/

johnnyanmac 3y ago
"large" grocers. I'm not cutting Ralph some slack over something they shoulda had setup years ago. >Also, you say "pretty inelastic" - you seem to be accepting that food demand is elastic, just less so than other goods. Sure, it's not as inelastic as gas for Americans. America has enough free/cheap ways to eat if it really really came down to it so they can't pull an insulin. Still, I'd put it pretty high. >Unsurprisingly, it turns out it depends what type of food articl I figured, but that would imply that premium or convinent food caused the price spikes. Maybe it did, but I'm not so confident given how and what the government subsidizes (another reason you can't just price hike goods willy nilly. Subsidies are so you can pass on low prices to customers, not so you can pocket more money).