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Tafkam Hokie
Joined: 10/07/1999
Posts: 40,227
Likes: 21,984
Tafkam Hokie
Founder Subscriber

Interesting you use the example of price hikes during a hurricane

As that is one of my prime examples when prices absolutely should increase. When you have a gross spike in demand (whether it is for fuel just before a hurricane or toilet paper during Covid), there are really only two choices for how to manage it. Either you raise prices until you hit a supply/demand equilibrium, or you don't and are stuck with shortages and then you have to allocate limited supply by rationing or lottery or a first-come-first-served battle royale where people will hoard. Say you don't raise the price of gas. Everyone who already has 3/4 of a tank of gas is still going to stop and get gas on their way out of town. When people are panic buying instead of only buying what they need, that gives you long lines and eventually the tanks run dry. And now the family who needs 5 gallons of gas to fuel the generator that runs the refrigerator to keep their kid's insulin...and who would happily pay $20 a gallon for it...can't get any gas at any price. Instead, just jack up the price of gas near the coast to $8 a gallon so the people who NEED it can still find it, and the people who don't won't stop for gas until they are out of the hurricane zone where prices are still reasonable. I recall my mom saying during the height of Covid that one time she actually found TP in the grocery store. It wasn't the brand she wanted, but she felt like she needed to buy it anyway even though they still had plenty at home. I really wanted to facepalm at that...behavior like that is exactly why there was a shortage in the first place. People call it price gouging as if it is only profit motivated. Yes, profit is a big motivator, but it is also the invisible hand of the free market at work to regulate a finite supply of goods in a time of inflated demand. Rationing, lotteries, and hoarding has never proven an effective way to allocate goods when demand exceeds supply.
Posted: 08/14/2024 at 02:27 PM ET
(In response to this post by RTFC)

Thread Replies (72)

Full Thread →
Inflation is insane. Just one more example
hokiepro • 08/14/24 07:49 AM ET
Free refills?**
CrystalCoveHokie • 08/14/24 04:24 PM ET
If you dine in. Yes.
hokiepro • 08/14/24 04:27 PM ET
Was there a tipping option as well?**
CrystalCoveHokie • 08/14/24 04:29 PM ET
I've found at Subway if you pay with the app, you aren't prompted for a tip
Tafkam Hokie • 08/14/24 04:44 PM ET
lol not yet **
hokiepro • 08/14/24 04:33 PM ET
Wow, this thread sure inflated since I last refreshed a few hours ago!**
pburg_hokie • 08/14/24 01:06 PM ET
Or is it supply and demand? Pretty sure they wouldn't sell it for that
UTPr0sim • 08/14/24 10:42 AM ET
High/equal demand for lower supply (higher supply costs) drives inflation
hokiepro • 08/14/24 03:13 PM ET
Well, people pay it, so that's what the price is.
Chris ColemanAdmin • 08/14/24 10:33 AM ET
I’m stopping. It’s part of my AM routine as I’m not a coffee drinker
hokiepro • 08/14/24 02:04 PM ET
In this specific case, I think it's different
Tafkam Hokie • 08/14/24 11:37 AM ET
Correct. Has less to do with inflation...and everything to do with...
great2bahokie • 08/14/24 11:08 AM ET
I read an article yesterday about how consumer behavior is blunting
Late 80s Hokie • 08/14/24 10:49 AM ET
Wish I could get paid for all the times I've explained supply and demand to
Hokie CPA • 08/14/24 10:41 AM ET
People pay for habits. McDonald’s has increased prices
hokiepro • 08/14/24 03:11 PM ET
How much was the trip there?**
MEHOKIE • 08/14/24 10:01 AM ET
$0; it’s on my way. **
hokiepro • 08/14/24 01:59 PM ET
Not inflation. Corporate greed.
Stork • 08/14/24 09:30 AM ET
To quote the Miller Lite guy - It is both It is both It is both!**
OrlandoHokie • 08/14/24 10:44 AM ET
It’s definitely a combination of a number of factors.
HokieHam • 08/14/24 12:42 PM ET
BINGO!**
NokieHokie • 08/14/24 10:34 AM ET
Inflation caused the increase, greed keeps prices from coming back down.**
HokieNoVA • 08/14/24 09:46 AM ET
Wrong. The prices were raised above the rate of inflation. Was extra profit**
NokieHokie • 08/14/24 10:35 AM ET
Meh, maybe if you're using the government's phony inflation rate.**
HokieNoVA • 08/14/24 11:32 AM ET
Nope. It was corporate price gouging.**
NokieHokie • 08/14/24 11:35 AM ET
While I get what you are saying, "price gouging" is a weird term.
Tafkam Hokie • 08/14/24 12:05 PM ET
I don't disagree. My only point was it wasn't "just" inflation. Prices went
NokieHokie • 08/14/24 12:07 PM ET
Of course - price increases, particularly in FF are mostly labor now**
RTFC • 08/14/24 12:09 PM ET
Or profit.**
NokieHokie • 08/14/24 12:12 PM ET
Are you suggesting we legislate a biased morality with respect to
RTFC • 08/14/24 01:08 PM ET
Interesting you use the example of price hikes during a hurricane ◄
Tafkam Hokie • 08/14/24 02:27 PM ET
I was really thinking in the
RTFC • 08/14/24 04:43 PM ET
Nope. Just pointing out inflation was not just rising costs.**
NokieHokie • 08/14/24 01:09 PM ET
Fair.
RTFC • 08/14/24 01:42 PM ET
You can argue the semantics all you want. I think it particularly applies
NokieHokie • 08/14/24 01:45 PM ET
Not semantics - those were your words quoted
RTFC • 08/14/24 01:55 PM ET
Oh it's capitalism fo sho.**
NokieHokie • 08/14/24 02:01 PM ET
Lordy. **
RoswellGAHokie • 08/14/24 09:45 AM ET
I go to the drive thru almost every time I go through Marathon
Coach McGuirk • 08/14/24 08:58 AM ET
Fast food in general has gone nuts....
JoesterVT • 08/14/24 09:15 AM ET
BBQ prices are out of control too, at least near me
HokieNoVA • 08/14/24 09:27 AM ET
Mission BBQ is good and lots of meat. At least $20+.
TomTurkey • 08/14/24 11:19 AM ET
Yep. Took my Dad to the Cburg Mission Bbq today. He only ordered a pork Bbq
BackInTheBurg • 08/14/24 01:35 PM ET
We went to 5 Guys a couple weeks ago, 2 little bacon cheeseburgers 1 medium
santafe • 08/14/24 02:19 PM ET
I had a burger and two beers at Sharkey's on Saturday and it was similar.
Chris ColemanAdmin • 08/14/24 11:11 AM ET
Try going out with a family instead of just yourself.
Tafkam Hokie • 08/14/24 12:12 PM ET
Yep. Glad I never had kids. That would be waaaay too expensive.
Chris ColemanAdmin • 08/14/24 12:15 PM ET
There’s still time, CC…there’s still time **
BackInTheBurg • 08/14/24 01:17 PM ET
Same, bro. Same.**
NokieHokie • 08/14/24 12:24 PM ET
You realize you just cursed yourself to live to age 99?**
Tafkam Hokie • 08/14/24 12:19 PM ET
Well, my grandma (mom's mom) lived to be 101.
Chris ColemanAdmin • 08/14/24 12:25 PM ET
BBQ is funny to me.
hokiehunter07 • 08/14/24 09:38 AM ET
It's not the raw material costs...
RTFC • 08/14/24 12:04 PM ET
you can smoke 30 pounds of butt with $5 worth of pellets?
JoesterVT • 08/14/24 10:36 AM ET
it tastes like $hit- but that's why it lasts so long- my charcoal -
bigbadbird • 08/14/24 10:47 AM ET
funny haha or funny queer?**
bigbadbird • 08/14/24 10:30 AM ET
Sausage burrito - was $1, now $2.24**
TomTurkey • 08/14/24 08:45 AM ET
Never sausage an increase**
MEHOKIE • 08/14/24 10:07 AM ET
Pedro says HELLO! **
Burruss Writer • 08/14/24 11:56 AM ET
do they make you pay before they hand it to you?**
bigbadbird • 08/14/24 08:24 AM ET
Another example: Publix brand soda.
MP4VT2004 • 08/14/24 08:21 AM ET
And don't even get me started on shrinkflation...
JoesterVT • 08/14/24 08:34 AM ET
Oreo cookies!
SteveInBaltimore • 08/14/24 11:36 AM ET
Stepson picked up a bag of Oreos to take with us on vacation last week
Tafkam Hokie • 08/14/24 11:39 AM ET
TWSS**
bigbadbird • 08/14/24 08:36 AM ET
Note that I've found some inconsistency by franchisee on the drink prices
Late 80s Hokie • 08/14/24 08:17 AM ET
I have run into that only recently.
MP4VT2004 • 08/14/24 08:32 AM ET
If you aren't using the apps for fast food drive thru
hoosnowahokie • 08/14/24 08:13 AM ET
Use the app…got a free sausage egg McMuffin and expected to pay
hokiepro • 08/14/24 09:46 AM ET
eh...That $1 deal was a promo. Large drinks were a couple bucks before that
JoesterVT • 08/14/24 08:03 AM ET
$1 tea was a promo? Tea at McDonald's was $1 for as long as I can remember.
MP4VT2004 • 08/14/24 08:18 AM ET
Don't know about "recently"
SteveInBaltimore • 08/14/24 11:54 AM ET