| ▲ | Aurornis 5 hours ago | ||||||||||||||||||||||||||||||||||||||||||||||||||||
This is an interesting example of what happens when the supply and demand curve goes into the extreme ends of the chart: The price of "selling" your product goes negative. It costs money to get rid of it. Negative prices occur from time to time in the electricity market because some types of power plants are slow to ramp up and down. So if demand falls too rapidly, spot electricity prices can negative. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▲ | jbm 5 hours ago | parent | next [-] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
When I worked at a Coke bottler in Japan, we had similar issues with product. Stuff that didn't sell was called "Flush Out" and had to be disposed of. You couldn't legally just dump the contents without paying money so I made an app that let employees get cases for shipping costs. It was popular, even though we were usually talking about weird flavours that no one liked (stuff akin to Apple Ginger ale) They eventually got rid of it, but I was already out of the company so I didn't know the reason. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| ▲ | strongpigeon 5 hours ago | parent | prev | next [-] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil briefly went negative a couple years ago too which was shocking. I thought about “buying” some, but then realized I’d have to set up for the oil to be picked up (or try to sell the contract before it expired). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| ▲ | lm28469 4 hours ago | parent | prev | next [-] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
I've recently seen potatoes for 26ct a kilo in a supermarket and wondered how people made money on that, farming, transportation, supermarket margin, &c. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▲ | zahlman 4 hours ago | parent | prev [-] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
> The price of "selling" your product goes negative. It costs money to get rid of it. But there also has to be a cost (or other liability) to keeping it, or you could just wait for demand to arise. (There generally is some kind of inventory/warehousing cost. But just saying.) | |||||||||||||||||||||||||||||||||||||||||||||||||||||