/biz/ - Business & Finance

Anonymous Wed Jun 14 12:39:13 2023 No.55290900 [View]
File: 27 KB, 415x318, demand-shifts-left.jpg [View same] [iqdb] [saucenao] [google]

Reminder: Decreased demand = decreased quantity demanded and decreased price
Reminder: the Fed tries to influence (and kill) demand by raising interest rates
They are succeeding.
But they are succeeding in killing demand too well. If you destroy demand, yes prices go down.. but so does the quantity demanded.
Reminder: companies make money based upon the number of products they sell times the price
What happens when both the number of products they sell, and the price of those products also goes down?
>Recession

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