Everyone’s got a guy. For me, it’s my fruit guy from Afghanistan. Every day I buy 3 bananas for $1 from him. But yesterday, he increased it to $1.50 so I walked by right by him in dismay.
Price hikes are scary, especially at 50%. No one wants to buy any higher than their initial purchase, and no one wants to carry around coins. It’s an inconvenience.
For me, coins just end up buried in my backpack to which I use them for tolls, sodas, or giving away to the homeless. So I guess there is some positive value.
“Price is what you pay. Value is what you get.” – Warren Buffett
Blueberries are always expensive though so when there is a discount I generally buy them and the fruit guy suddenly becomes a hero.
Economics is inevitably tied to happiness but a price hike or sale produces the same feelings of happiness or frustration no matter how rich or poor you are. The fruit guy experiences the same fate when he makes or loses money on a sale.
Purchasing power is free-floating. Survival becomes a matter of pragmatic choices. The fruit guy is just a piece of the economic index tweaking prices for margins.