• finitebanjo@lemmy.world
    link
    fedilink
    arrow-up
    26
    ·
    3 months ago

    Theres an economic theory used to set prices called Supply:Demand Equilibrium wherein you maximize profit by calculating a curve and generating a table where the axis are number of buyers and price bought at.

    If the good is a necessity then you can expect a large number of people will buy it regardless of how high the price is, if they have the money, giving the incentive to set the prices higher despite having less demand at that price range.