The Cure for High Prices Is ... High Prices

Posted on: 09, Jun, 2011

There is an important saying in the commodity market, "the cure for high prices is, high prices." This saying goes back to your economics 101 class in which you learned that market prices are set by supply and demand. (Click to enlarge) As prices rise, producers are willing to sell more. As prices fall, producers are willing to sell less. For consumers it is the other way around. Sometimes, due to any number of different factors, commodity prices rise to levels where...

Tags: leigh drogen , price , high , consumers , rise

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