3 ms·
It's never purely on the buyer or the seller. The price goes up 30%; fewer customers buy them and the ones that do pay more. The business makes less money; th
by kbelder 2y ago
It's never purely on the buyer or the seller. The price goes up 30%; fewer customers buy them and the ones that do pay more. The business makes less money; they cut some prices to recoup some sales.... maybe to $900. The lot of shirts now sell for $1200.
Basically, market distortions like that are never paid exclusively by one party or the other; instead, it moves the equilibrium point. Both the buyer and the seller are worse off.
Granted, that does take some time.