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Thread: KFC prices rise!

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[quote=APAULT,240301]Good question Evening!  But we cannot discussthat here, it;s the wrong forum !   haha

OK, it goes back to the basics of the free market/market economy or whatever you choose to call it.  Suppliers will only proiduce if it is worthwhile, so if their costs go up, they must increase their prices. OK so why do their costs go up... yes it is is a somewhat circular argument, but hold on!   Buyers choose how to spend their money, or they can choose to save it.  If prices are increasing, people are spending money (and in the western economies borrowing money to do that.  Chinese people have exceptionally high levels of savings because of the fear that past problems might return, but they are beginning to think they don't need the savings and are beginning to spend it...so we now have all those savings added to the current earnings chasing the (temporarily) fixed amount of goods and services....so people are competing for the goods and services...and prices go up (you don't see the competing, but it is our behaviour that counts...when prices rise we decide to buy anyway .  And that in turn adds to the prices of the suppliers and round it goes... Simple!  (If you have been brought up on this stuff in a western economy!)[/quote]

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