> My mum owns a small café in Leicester. Her electricity bill has just jumped from £10k ($12k) a year to £55k ($64k) a year.
> Callum's mum may try to avoid shuttering her doors by raising her prices by more than 5x but that will result in $13 chocolate crossiants and $20 iced lattes.
What kind of flawed reasoning is this? The net prices will only have to go up 5x if the price is the product originally was 100% covering the cost of electricity. In practice, it'll probably need to go up something <2x to maintain the same profit margins, with other costs (e.g. wages, property) trickling up at a slower pace (years) as the overall economy adjusts. Which is material, no doubt, but let's not lose ourselves to hysteria here.
> Callum's mum may try to avoid shuttering her doors by raising her prices by more than 5x but that will result in $13 chocolate crossiants and $20 iced lattes.
What kind of flawed reasoning is this? The net prices will only have to go up 5x if the price is the product originally was 100% covering the cost of electricity. In practice, it'll probably need to go up something <2x to maintain the same profit margins, with other costs (e.g. wages, property) trickling up at a slower pace (years) as the overall economy adjusts. Which is material, no doubt, but let's not lose ourselves to hysteria here.