So due to the bad weather in California, there are very few oranges circulating in grocery stores for sale. Because of this, the stores have decided to sell them for a whopping 8.00 a bag. No one buys the oranges (naturally) and they are sitting there molding. Why would you hike up the price on a perishable good like that instead of selling them at regular price and then saying, "sorry, we're out" when they are gone? Aren't they losing money this way?
2007-01-26 17:27:35 · 3 answers · asked by slaughter114 4 in Business & Finance ➔ Other - Business & Finance
Basic supply side ecomomics is what determines prices in an inverse relationship. When supply goes down price goes up and vice versa. They are forced to pay more ofr the goods and pass that cost on to you the consumer.
They don't lose money because they get credits and write offs for spoiled goods.
2007-01-26 17:57:03 · answer #1 · answered by Scott O 3 · 0⤊ 0⤋
Because enough people still buy them, kind of like corn . . . corn has now skyrocketed in price and many people who eat corn tortillas have trouble paying for them but enough people still do so . . .
2007-01-27 01:32:49 · answer #2 · answered by kate 7 · 0⤊ 0⤋
Oh, probably someone needs them for a recipe and will buy them at that exorbitant price!
2007-01-27 01:32:15 · answer #3 · answered by Adlpated 3 · 0⤊ 0⤋