Written by John O’Donnell, Online Trading Academy
The Chart of the Week
Supply and demand are obviously very important in determining the price of goods but there is some nuance involved. Supply can increase through more efficient production and if efficiency improvement can keep ahead of increasing demand a “good” deflation can result. More efficient production of goods should be destined to cause prices to fall. Take batteries for instance.
Discussion of “good” deflation after the Read more >> jump.
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