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by shrikant 493 days ago
Why do you assume their costs are going up the same percentage? It's not clear from the linked article, but maybe their costs per your example are going up 12% from 500 to 600, and they're only raising prices by 10% to 1100 to keep the same margin.

Of course I doubt this would actually be the case (because capitalism), but that's the one of the assumptions you're missing in your example.