Price Increases
Sir,—There was once a manufacturer who employed a staff of seven. This team produced 500,000 units of their product each year. One day the Arbitration Court granted a 5 per cent wage increase. The employer thought of raising his prices to compensate for this $650 addition to his wages bill. Then he thought that if, instead of giving the wage increase, he reduced his prices by an equal annual amount, he would keep his product competitive on world markets. So he worked out this reduction in price and it was only one-eighth of 1 cent a unit of his product. Why, then, did the price of his product increase by 2 cents a unit “because of increased wages"?—Yours, etc..
INCOG. INK-HOG. September 13. 1968.
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Press, Volume CVIII, Issue 31785, 16 September 1968, Page 14
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126Price Increases Press, Volume CVIII, Issue 31785, 16 September 1968, Page 14
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