Steve
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Post by Steve on May 23, 2024 16:44:07 GMT
But prices are set by the seller (judging the market) whereas wages are set by the buyer (judging the supply/demand job parket) Prices are not set by either the seller or buyer in either case. You could say prices are set by t he transactions that actually happen, but both sides are party to any transaction. It's an overlap of needs type thing. If one side has its needs moved, then transactions also shift Last time I went in Tescos they set the prices Last time I was a manager the management and directors set the wages |
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Post by Zany on May 23, 2024 17:09:17 GMT
Prices are not set by either the seller or buyer in either case. You could say prices are set by t he transactions that actually happen, but both sides are party to any transaction. It's an overlap of needs type thing. If one side has its needs moved, then transactions also shift Last time I went in Tescos they set the prices Last time I was a manager the management and directors set the wages Then can you explain why they didn't charge more? |
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Post by Steve on May 23, 2024 17:20:50 GMT
Because they judge what the competition dominated market will bear
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Post by Orac on May 23, 2024 17:38:02 GMT
Because they judge what the competition dominated market will bear Or, to put it another way, they know if they charge too much there will be no transactions and so their 'price' would be moot. |
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Steve
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Post by Steve on May 23, 2024 18:49:06 GMT
That's how markets work.
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Post by Zany on May 23, 2024 18:54:14 GMT
Because they judge what the competition dominated market will bear That's right. The market decides prices. There is a sweet spot, rise the price a pound sales go down correspondingly. Lower the price a pound and sales go up but profits go down. The market decides the sweet spot. When wages rise profits fall because unless you have an essential commodity people simply choose not to buy. Unfortunately most of us don't sell essential products. |
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Steve
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Post by Steve on May 23, 2024 19:07:08 GMT
The market determines long term but the immediate is just like I said: Sellers determine prices, buyers )of labour) determine wages.
Anyone thinking employers set wages or shops set prices by what people need is so mistaken.
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Post by Zany on May 23, 2024 19:53:30 GMT
The market determines long term but the immediate is just like I said: Sellers determine prices, buyers )of labour) determine wages. Anyone thinking employers set wages or shops set prices by what people need is so mistaken. No it isn't. I run an SME, our prices are dictated by what the market will bear every day. You are so mistaken. |
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Steve
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Post by Steve on May 23, 2024 20:23:38 GMT
Niche example that doesn't feature in any recognised inflation index
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Post by Zany on May 23, 2024 20:28:55 GMT
Niche example that doesn't feature in any recognised inflation index And Tesco's ? They don't compare their prices to ASDA Sainsbury's etc. No they aren't controlled by the market, they decide their own prices, they just happen to be the same as all the other supermarkets. Dear oh dear. |
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Post by Steve on May 23, 2024 20:47:20 GMT
You seem to be forgetting your assertion was electricity price hikes drove wage hikes.
I say again it's the markets that drive the big picture positions on prices and wages
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Post by Zany on May 23, 2024 20:52:38 GMT
You seem to be forgetting your assertion was electricity price hikes drove wage hikes. I say again it's the markets that drive the big picture positions on prices and wages No, you've just dodged back to wages. Why? Hmm, I could guess. |
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Post by Steve on May 23, 2024 21:55:50 GMT
No dodging, that was the original point at hand
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Post by Zany on May 24, 2024 6:55:33 GMT
No dodging, that was the original point at hand Fine, but the CURRENT point at hand was. And Tesco's ? They don't compare their prices to ASDA Sainsbury's etc. No they aren't controlled by the market, they decide their own prices, they just happen to be the same as all the other supermarkets. Step up and admit you got this one wrong. |
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Post by Orac on May 24, 2024 7:24:57 GMT
Nobody sets prices unilaterally. The only way you could do this is to own all the alternatives to what you are offering in trade.
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