Comment on We'll pass Trump tariffs back as higher prices for Americans: German firm
pc486@sh.itjust.works 1 week agoYes and sometimes worse. When a market cannot bear a price increase, the product simply ceases to exist. E.g. a low end $800 bike would never sell at $1,600.
dvoraqs@lemmy.world 1 week ago
I think you need a more extreme number if you say the words “would never sell” because that is only double the price.
With the other inflation we’ve seen, especially for the price of eggs, and upcoming tariffs those kinds of changes are not unheard of.
Supply and demand would still say that there would be less products designed and produced, but unless we are talking about specific branding, I would be surprised if supply or demand for any kind of product drops to zero.
pc486@sh.itjust.works 1 week ago
Why wouldn’t a price that’s too high to pay prevent a product from selling? If demand of a product goes from 10,000 units to 10 units from the price shift, then it’s better to not develop and sell it. The rational move is to focus on the high end or custom-made products where you can have the margins necessary for low-volume to make sense. When it comes to low-end products, volume and throughput is the name of the game.
Want an example? How about this smart move by Framework stopping selling some of its cheapest laptops.