Price Hikes

Little price hikes add up to one big hole in pocket. Are you agreed with it? When it comes to price increases, the consumer is always at the losing end because what goes up hardly ever comes down. Based on the basic economy, the price will goes up because of the demand and supply. For theory of demand, when the price increases, the demand also increases and vice versa. It shows as negative relationship. Meanwhile, the theory of supply shows as positive relationship due to when the price increase, the supply also increase and vice versa.

For some products, for example electronic items like television, smartphones and notebook, the prices shown as plunged progressively because of newer models and technology updates. These products are still considered as non -essentials except for those in the middle to upper classes who are more than happy and able to pay for bigger and better products.

For the essential products such as food, clothes and house is vital to everyone. If the price surged to progressively in the future without the implementation of the minimum wages, in my opinion it will be a problems on the financial position of household nowadays.

Personally, I think the ways to overcome this issue is the government needs to do more fostering the consumers to be smart and savvy. Price fluctuations are part and parcel of life but savvy consumer will know how to stretch the ringgit and not fall victim to the end ruthless businessman seeking to entice him/her to simply buy and buy without a practical knowledge. Let’s we start the internal factors before we begin the external factors.