Don't Mess with Prices!

Don't Mess with Prices!

by Luke Metzler -
Number of replies: 1

It is clear now that when you mess with prices in any way, it could be a major consequence for an economy. However, would there ever be a scenario when changing prices would be a good thing to do? It seems that there are not many moments to do that considering that prices sort of change on their own based on what the supplemental text has been talking about. 

In reply to Luke Metzler

Re: Don't Mess with Prices!

by Danny Weaver -
Individual consumers willing to pay higher/lower prices because of a change in demand is one reason for them to change their price they pay. Sellers willing to charge a higher/lower price because of a change in demand is another. Outside of those two reasons, there is no reason to change prices - especially from the top down. Doing so causes shortages and surpluses.