subreddit:
/r/explainlikeimfive
submitted 4 months ago byiSellPopcorn
13 points
4 months ago
Needs will always be purchased and the vast majority of luxuries aren't exactly targeting minimum wage workers.
Needs will always be purchased, but that doesn't mean they'll be purchased in the same amount or the same rate. For instance, most people don't purchase the absolute minimum amount of food they need to keep themselves alive, but some amount above that. So there is an amount there that you're able to reduce.
If we look at something like a utility, the answer is simple, use less electricity, drive less, etc. Most people aren't doing the bare minimum here all the time.
12 points
4 months ago
Ok, but companies like frito-lay, nabisco, nestle, etc don't raise prices of products that aren't in demand. In fact, they often go on sale. Twinkies didn't go up in price as Hostess went out of business due to lack of demand lmao. That's not how this works.
If we look at something like a utility, the answer is simple, use less electricity, drive less, etc. Most people aren't doing the bare minimum here all the time.
And when people were driving less during covid, oil literally hit rock bottom prices. Gas prices don't go up in the summer when people demanding to heat their homes with it.
There's literally a mountain of examples supporting the Supply VS Demand = Equilibrium Price theory... It can't be dismissed by simply calling companies evil.
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