People reacting to price signals with most hardly heaving studied economics.
AS tomato prices zoomed people used complements like puree and ketchup as these will factor in prices with a lag. They also used substitutes approach and started buying veggies which do not use much of tomatoes:
Demand for tomato puree and ketchup has shot up by 40 per cent within one month as people have curtailed the use of tomato and prefer dishes which do not require much use of tomatoes, like lady finger or pumpkin etc, according to latest survey done by Assocham.
According to survey, the local grocers have also increased stock of tomato puree/ketchup. The local grocer said, in the last two weeks there has been a rise in sales of products such as puree, ketchup as one spends less on buying puree/ ketchup than a kilo of fresh tomatoes.
A rise in the price of tomatoes has affected the budgets of families in the city. As per the Assocham recent survey, about 78 percent of households find difficult to manage their household budget and squeezing families’ finances to the lowest level due to sudden rise in price of tomatoes, pulses. The maximum impact was felt in Delhi-NCR followed Mumbai, Ahmedabad.
Nice bit of seeing micro work in real life…