Show HOW PRICES DEFLATE Con colsum consumer sum er resistance 0 does it ft those same forces arces which recently knocked down prices of food and other commodities in a spectacular outburst have been quietly at work all during the post past year rising supply in a number of lines of goods has caught up with demand and in some cases it has bumped into demand and money supplies on their way down according to an analysis by the family economics bureau or of northwestern national lite life insurance company poultry eggs potatoes oranges canned fruit juices certain canned fruits and vige vegetables tables preserves and jellies Q alhage have had little private recessions ces of their own during the past year by the end of 1947 the prices of most of these items either had leveled off or r were actually below the levels ot of a year previous the study says in manufactured goods the supply of small radios recently has overflowed the level of demand with prices skidding jn in many cities large radios are very close to our current demand as are washing me ma chanes stoves and deepfreeze deep freeze units As long as consumers demand dematia goods despite rising prices the study pointed cut the manufacturer will pay higher and still higher costs for or materials and labor rather than have his production shut down and his flow of go goods dds to the consumer cut oft off retail stores buy his finished products despite higher manufacturing costs because they know their customers I 1 want the goods but when enough consumers indicate they wil not pay increased prices then manufacturers and stores stiffen their own resistance to higher prices of materials wage boosts and arid the resulting price marlc mark ups for the finished goods because itis it is evident that such further increases will prevent we the products product from bel being ng sold when demand falls alls off and meets rising supply the result is a halt in the price rise and often a sharp charp downturn sometimes consumers merchants and manufacturers ill all decide that prices are going to ke keep ep on declining and therefore cut C their buying still abre more all along the e line downward price spirals usually start in that way the study observed I 1 |