WHY SOME PRODUCTS ARE COSTLY IN THIS ECONOMIC SLOWDOWN?
1.Generally when Demand is more than Supply, prices go up for any product .
This is common. If for a car their are 10 buyers then manufacturers or dealers/ traders will increase the price of car.
2. But interestingly now, despite of slowdown and lack of demand, prices are going up for some products.
This looks surprising. Why prices are going up??
There is a logic behind increase of price of few products.
If demand is less and traders want to make profit, then they charge higher prices on few people who buy anyway.
By charging more, traders make profits, even with small volume of sales.
3. This is happening now, as explained in point 2 above , Hence, it is high time, Government has to ensure more money in people’s pockets.
The problem now is not of availability of things, but the availability of money with people.
We need to ensure people with more money, more spending, more consumption, and more demand.
4. If India has to fight the economic slowdown, the best weapon now is, more effective demand and more effective expenditure.