When Prices Go Up, It Never Comes Down In My Country

The giant of Africa. The great nation of over 371 diverse ethnic groups living together some more visible than others. I love my country that's a fact and I feel strongly in my spirit that 🅶🆄🅸🅽🅽🅴🆂🆂 🅱🅾🅾🅺 🅾🅵 🆁🅴🅲🅾🆁🅳🆂 (that's if they haven't restricted us yet 🤣🤣🤣) should recognize us for breaking a very popular law The 🅻🅰🆆 🅾🅵 🅶🆁🅰🆅🅸🆃🆈.
Gravity as we all have been taught in primary school brings things back to the ground when they go up. I'm sure you don't need a lecture in gravity and it's role in balancing life and human activities.

Source

Even while trading securities, when they go up, they will eventually retrace back down and this is something that affects the whole earth but Nigeria is breaking that law very well.

I wonder why it doesn't seem to work in this beautiful country of mine. On several occasions, the prices of things have increased due to the cause of inflation and naira depreciation amongst others but even though after most of this are resolved, there is little or no change in the surge of the price. I know that this is not just common in my country but other countries also experience this but if there is an award for this, then I guess my country is definitely taking the award home.

I did my research and I came up with some of the major reasons why the prices of things/market value goes up but still doesn't come down after the issue has been sorted.

1. Sticky Prices:
   Prices in certain markets can be "sticky," that is they do not adjust quickly to changes in supply and demand. This can be as a result to policies/agreements made by share holders decisions, long-term commitments, or other factors that hinders prices from immediately reacting to changes in the conditions that made it surge in the first instance.

2. Market Influence:
   If there is no much competition in a particular market and a few main players have high market influence, they may be able to hold higher prices even after the initial factors causing the increase are resolved. This is more likely to happen in industries with high barriers to entry. Looking at the current market of noodles and spaghetti. There is a market power between two different companies. These two influence the prices of the product market as they are the leading producers of their individual products.

3. Monopoly:
   As you may know, monopoly (according to Investopedia) is a market structure where a single seller or producer assumes a dominant position in an industry or a sector.
   When a certain market is monopolized, the decision of a product price can be decided upon by the company knowing that they are the major market movers with little or no competitors. They know that their prices won't affect the sales cause the consumers will have no choice than still go for it.

4. Perceived Value:
   Consumers' perception towards a product's value can also play a role. If we the consumers believe a product is worth a certain price, even if the cost of production decreases, the seller may be reluctant to lower prices because they already know the consumers have placed the product on a high regard.
   For instance, there was a time where I always changed my toothpaste brand every month because I was trying to find the right one. When I eventually did, I maintained it for a long time so it later went scarce during this holiday. Some other shops started seller at a higher price and people bought. When the paste came back into circulation, if these shops didn't still reduce their prices, the consumers might not mind because of their already built love for the brand. I also would have bought at that price if I had more on me and didn't push toiletries shopping for last. So most sellers like to ride on the love of the brand by the consumers.

5. Inflation Expectations:
   If there is a general rumor of future inflation, business owners may choose to maintain the high prices to prevent them from being at a loss when the products eventually inflates.

6. Changes of Cost Structure :
   Even if the initial factors causing the price increase are resolved, the cost structure of the industry may have changed. For example, increased regulations or higher costs in production could lead to a new alternate high that becomes the new normal for prices of the products.

7. Psychological Factors:
   Sometimes, markets are influenced by psychological factors. If consumers or businesses have adjusted to higher prices, there may be resistance to accepting lower prices even if the initial reasons for the increase are no longer relevant.
   This majorly happens with transport and I'm sure that i am not the only one to have observed this. Probably the main issue if this is from the park management. If previously they used to take #500 or #1000 for a seat from the drivers and the price then increases to #1000 or #2000 for the same seat, they would earn more and the likely chance to go back to the previous glory is very very slim.

8. Government Policies: Policies made by the government, such as taxes can influence prices. Changes in these policies can affect the balance of the price in a market.

In as much as all these influences the market prices of things and they are really valid reasons. But i believe the major cause of why prices do not really go back down is greed. It is a common knowledge that when you have tasted a certain amount, you wouldn't like to go back to the previous price. I just pray we get to understand that the government wouldn't come and help us. All we have is ourselves.

So guys. I guess that’s all for now. Let me know in the comment section on the best approach for these plans and if they are realistic. 👌👌👌