Lets enjoy an exercise:
I purchase 12 bales of hay for $12. I plan to sell them for $1.25 per. A tidy profit of $3 for me, ye ole hay distributor.
One of the hay fields I buy from suffers a lightning sparked wildfire. The farmer sez my hay will be $15 for a dozen next time I buy.
I raise the price of my
current stock of hay to $1.90. The fire didn't effect the price I bought my current stock at...but I smell the ability to boost my profits. LOL! ROFL! LOL! ROFLMAO! SUCKAS!
Heck, it's
Cow Day Weekend! Scratch that $1.90 stuff, I'm selling for $2.25! Moo Money Moo Money!
http://www.koshland-science-museum.o.../causes04a.jpg