It means Rupa & Company is expecting demand for yarn to pick up once prices stabilize. This is because when prices are volatile, businesses are hesitant to make large purchases, as they don’t want to be caught out if prices go up further. However, once prices stabilize, businesses are more likely to start buying yarn again, which will increase demand.
In addition, when prices are stable, it is easier for businesses to budget and plan for future purchases. This can also lead to increased demand, as businesses are more confident that they can afford to buy yarn.
Here is an example of how a price increase in yarn can affect the cost of inner garments:
- Let’s say that the price of yarn increases by 10%.
- This means that the cost of making a pair of inner garments will increase by 10%.
- If the original price of a pair of inner garments was $10, the new price will be $11.
As for your question about whether demand should go up when prices go up, the answer is not necessarily. In some cases, demand can actually go down when prices go up. This is because consumers may be less willing to buy a product if the price is too high. However, in other cases, demand can go up when prices go up. This is because consumers may perceive a high-priced product as being of higher quality.
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