Question:

"to pass on price rises", what does it mean ??

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"to pass on price rises", what does it mean ??

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  1. This phrase means that when a company that produces a product faces increasing costs to make that product (whether the increased costs are higher taxes on the company, or higher prices on the items that are used to make the product or higher fuel prices of the company) they simply charge more for the product, thereby "passing the costs on" to the consumer.  This is why you often hear that companies wont pay for a tax increase on them...the consumer will because the company just raises prices.


  2. Costs more to feed the cow who gives the milk. Farmer charges 5 cents  more.  Shipping the milk costs more to get it to the store so trucker charges 20 cents more.  Grocery store passes on the price rises to you and you pay 40 cents more.  This is as simple as I can make it

  3. when the cost of raw materials increase the manufacturer increases the sale price of the goods. It means the profit margin doesn't change even though the costs have increased because the price rise has been passed on.

  4. As things become more expensive, it is you as the end user that always ends up paying for it.

    Examples:

    There is less gas in the world, harder to find. They have to use more expensive technology to get it - Gas prices go up.

    Price of wheat goes up. Bakers need wheat to make bread, you end up paying more for a loaf of bread.

    Corn starts getting used for ethanol, demand increases, corn on the cob goes up in price as there is less corn available.

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