Quote:
Originally Posted by Bill Bumface
If all the sudden there is 2% more margin on every single business in the country, people will come in and undercut those margins for market share, or in other cases that temporary bump will be eroded by future increases in other business expenses.
You're asserting pricing is arbitrary, and not directly coupled to the input costs of a business, and not directly related to demand.
If that was the case, every store may as well charge a billion dollars for everything.
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There is this economic concept called elasticity. I assert that a 2% upward movement in prices will do nothing to dampen demand for any good or service.
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