3 ms·

I think it is perceived as a reasonable profit vs an unreasonable profit.

• AnimalMuppet 2y ago
  Well, but see, supply and demand works on both ends. That is, I'm selling the thing that's in short supply. But why is it in short supply? Because if I'm the manufacturer, I can't make any more of them than I'm making. And if I'm the distributor, I can't sell any more than I can buy from the manufacturer. And why can't the manufacturer make any more? Typically, because there's some resource that they can't get. So they get some more, but they get it by paying more for it. So the point is, when the company selling you the widget raises their price, that isn't pure profit. Their costs went up too, because the price of what they need went up.