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Deto t1_j9hv2i7 wrote

Reply to comment by TypicalCraft7 in [OC] How Walmart makes money (they just released earnings for the fiscal year ending January 31) by IncomeStatementGuy

Not all goods have inelastic demand. Costs going up means people will buy less.

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TypicalCraft7 t1_j9igy75 wrote

It's Walmart. Most of their products have relatively inelastic demand in that the are low cost consumer goods.

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Deto t1_j9ihlp3 wrote

I mean, if your suggesting that Walmart could raise prices and make more profit then why aren't they doing that already? Like if the price right now is X, then the only reason it's not X+.50c is that they've determined they would sell less at the higher price point - enough less to not offset the increased profit.

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TypicalCraft7 t1_j9ihtb1 wrote

They can't do that because they have competition who would charge less.

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