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Old 02.02.2006, 15:06
Richard Richard is offline
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Re: restaurant prices...

Quote:
The squeeze really begins to show up when people begin spending less of their disposable income on going out...

Jack
But then are you not in the classic supply and demand model whereby if the price is too high the demand will fall until the price adjusts? And in the interim the restaurateur has to earn less or go bust thereby reducing supply and making those who are still left profitable and able to charge higher prices... If everyone keeps their wallets shut it will not be long before the restaurants change their pricing. I do find it interesting that there are enough restaurants who surely buy their produce from the same suppliers but are not in Zurich city and charge a fraction of the price.

Again while I do not dispute your model I have seen a similar argument for the price of champagne whereby the growers actually only make 5% but do charge 5-10x+ the price of German sekt... So what to the Germans earn!
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