4 ms·
What are you talking about? Disrupted supply lines mean higher cost to deliver materials (longer routes, special equipment, etc). Higher prices encourages sup
by gwright 14y ago
What are you talking about?
Disrupted supply lines mean higher cost to deliver materials (longer routes, special equipment, etc). Higher prices encourages suppliers to expend the extra $$$ to deliver the goods. Or even new suppliers to enter the market (for example think about construction workers or tree removal companies in the wake of a large storm traveling to where the work is).
If the price can't change (legally) then suppliers will simply ignore the problem until conditions return to 'normal' thus ensuring shortages.
- freshhawk 14y agoYou: Really? There is no historical record of the market responding to increased prices? Me: we're talking about "price gouging" during disasters or some other event that disrupts normal supply lines Seems pretty clear what I was talking about. Your hypothesis about price gouging during emergencies doesn't have historical evidence. I understand perfectly why you think it should work that way according to your ideology. I was pointing out that, in these circumstances, it doesn't match up with the data. Plenty of other commenters, with knowledge of inventory logistics, have explained why.