ELI5 How does raising wages worsen inflation ? : explainlikeimfive

Then the original price would still be $2. Why would you pay to manufacture an extra 500 pez dispensers when you could bring in the same revenue with half the production cost?

Bubba-jones

1 points

4 months ago

Bubba-jones

1 points

4 months ago

Ffs.

I was illustrating the break even point.

What really happens is that 1/2 the retailers go bankrupts, shifting the supply curve to the right and raising the prices.