Quote:
Originally Posted by RiderOnTheStorm
Ever notice how prices go up instantly but take months, if ever, to drop? Merchants are clearly incentivized to take advantage of the higher margins caused by dropping costs (i.e. lower inflation). Classic example; gas prices. Something happens in the Middle East and pump prices go up over night, even though the new oil takes 3 months to be shipped, refined and delivered to market.
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Replacement cost, commodities futures and distribution cost all factors in.