Are we sure this is economically unreasonable? I think this happens in many financial systems; all you need is for a price increase in one place to cause cost increases at a delay (ie, fast inflation), eg: by workers getting paid more so they can afford the aforementioned price increase.
(We should also note there are markets that don’t do this. Air travel is a notable example.)
More interesting to me is price spikes when there’s no actual increase in costs. Several of those as of late.
LovelyMover@lemmy.zip 2 weeks ago
Prices go up, governments react to help the industries that take the money but fail to lower the prices for consumers, it happens time & time again. Even if the benefit is passed onto consumers it never returns to the pre"whatever" price, it is always slightly higher. Can you think of a thing that got a price hike that then returned to the same price, or less?
I’m sure it must happen but I’m not seeing it.
Artisian@lemmy.world 2 weeks ago
I gave an example, no? Flight prices (on legs with a low-cost-carrier) are quite cost responsive, and have certainly raised and lowered back to where they started.
LovelyMover@lemmy.zip 2 weeks ago
I’d consider that as more of a luxury item where they have to be responsive or lose a lot of money. Food on the other hand, everyone’s gotta eat, those are the ones seem to only ever go up & up, & drops are still above original.