Quote:
Originally Posted by Shazam
Prices are very sticky. Only certain very specific commodities experience price drops.
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Housing, food, and energy all experience regular price fluctuations, and that makes up about 50% of peoples' spending. Travel costs can also fluctuate greatly both up and down.
And many consumer goods also experience price drops over time. While prices for specific models might be sticky, companies often release newer versions that are cheaper than prior ones in response to reduced demand. For instance, a base model Macbook Air was $1299 when it was released in 2010; by 2020 is was $999, despite the estimated cost of production being essentially identical between the two.