THE COST OF LIVING.

Manawatu Standard, Volume XLIII, Issue 431, 23 June 1922, Page 5

THE COST OF LIVING.

FACTORS IN PRICE FIXING. DEMAND FOR DEAR ARTICLES By Electric Telegraph.—Copyright. Received Juno 23, 11.20 si.in. SYDNEY, June 23.

The Sydney .Morning Herald, in a special article dealing with the cost of living, says that while prices generally have fallen, with a tendency in some instances to drop even further, there is a feeling among the public that in some cases the drop is insufficient, especially in view of the declaration of a decreased basic wage. The paper points out that there are factors in price fixing which are not always appreciated by the public and quotes the heads of business houses, showing women’s fads and other unrecognised causes which rule some lines. One merchant declared that there was a section of the public who demand a high priced extravagant article that was not governed by the law of supply and demand, but absolutely by the taste of the purchasers, who very often would not take high quality goods at half the price. If they were offered to them they would feel that the goods were not what they wore represented to be. The Herald adds, speaking of absolute necessities governed by the law of supply and demand, that prices in every instance have fallen very considerably.—Press Association.