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> Low demand in the US, means less sales to US, so they may try to make up for the loss of profit on the US market by increasing prices on other markets... So g
by jeromegv 2y ago
> Low demand in the US, means less sales to US, so they may try to make up for the loss of profit on the US market by increasing prices on other markets... So global price increase.
This is not how supply and demand works in a competitive market. If demand drops, supplier compete on price and it leads to a reduction in price. They don't up the price to try to "make up", they can't, because someone next door will accept the lower price to get rid of their supply.
- dataviz1000 2y agoThe United States government is adding massive taxes on everything the United States consume. Please add what we know about what happens when the United States drastically increases taxes to your equation.
- anonymars 2y agoInstead of hinting, can you spell out what you think is wrong with the parent hypothesis? I'm reading it as: US prices go up. US consumption goes down. Less global demand for same global supply. Result: global price goes down. Where are we disagreeing?
- dataviz1000 2y agoMisread what you said. You are correct.