The Little World

Suppose you were a person who imports scale model kits from Ruritania to sell in Australia. Suppose you have been selling them for years at Price A.

Then suppose that a great national tragedy strikes Ruritania – war with neighbouring Latveria. Factories are deserted and stocks of Ruritanian scale model kits are threatened. Fortunately you still have a fair stock of them in warehouses in Australia.

Things progress and some of the factories can still operate – and some shipments are still getting out. Stocks do start to trickle back – but unfortunately at a higher price – Price B. If you are going to sell Ruritanian kits to local hobby shops they’ll have to be at a higher price – one that will be passed on to the final consumer. That seems logical – money has to go back to Ruritania to continue production.

What of the current stocks, however? The stuff here already. Do you wholesale them out at the old price A or do you lift them to the new one – B? If there is more money to be made, do you make it?

I’m not in retail trade any more, so I don’t know how this sort of thing is meant to play out.