You are very correct, there are some goods or commodities that we can't in a way do without them, so irrespective of the hike in price there would still be massive patronage from consumers not minding the amount it goes for.
Why some products would still sell with price hike.
- Thread starter Niyi Briggs
- Start date
You are very right, these can be similar to basic needs either directly or indirectly because we need the to sustain ourselves, the demand for these products still remains thesame even if the prices were to be increased, but it will get to an unbearable point that people will source for other alternative as they could no longer cope with such.
It is not all commodities that would respect the rules of demand that when the price s is high, the amount of quantity demanded would be low and vice versa. The luxury commodity do not respect this rules. Irrespective of their hike in price, people will still buy it Also salt because of its essentiality, people would still demand for it.
Two factors that can make a product to be still demanded despite price hike. The first reason is is extremely high demand. The second reason is if the goods is a luxury good.
Before a commodity could control high demands, such product must have quality essential utility values. After that, such product must not has substitute in the market and finally, it must be a luxury products.
If a product is a utility products there is no way prices going to prevent it from still being sold because it is something that people cannot do without.
There are products or services which serve our basic needs such as foods, utilities, transportation service, personal care products. We need to buy them even there is an increase in price.
You are on point with all the parameters you listed. Food items that are basic commodities for survival don't obey the law of demand as regards pricing. I think it is best for someone to sell these kinds of products as a business.