00:00Now I did ask you to bring something into the studio. I'm going to ask you to take it out
00:03now.
00:03I have my own bag of Doritos. My new economic indicator of choice.
00:10I've got a pack of cool ranch Doritos. I think it's like a snack size. I don't know what you've
00:15got there.
00:15Yeah, I also have a snack size. I have the classic.
00:19But let me explain why I think Doritos are the economic indicator for me of this week.
00:24PepsiCo, which is the company that owns Doritos, missed its revenue target by a billion dollars for the second year
00:31in a row.
00:31It raised its price of Doritos by about 50% since the beginning of the pandemic to $7.
00:38Not quite this small, but like the larger snack sizes have been selling for $7.
00:43Okay, which seems like a lot of money for Doritos.
00:45Companies were warning it about this. Like Walmart started shrinking its shelf space and things like that.
00:50And consumers stopped buying it.
00:52So ever since like the middle of the pandemic, when we started to see inflation rise,
00:56consumers have basically been just paying the higher and higher prices that we've seen coming, right?
01:01There was just this sort of wonder that economists kept talking about.
01:04Like, oh, people will just pay it.
01:06Like the prices go up and people keep buying. People keep buying more and more.
01:10Well, it seems like we've hit that ceiling with the Doritos.
01:14Suddenly, people are like, you know what? I'm not paying $7 for a bag of Doritos.
01:19This is called demand destruction, right?
01:22Stacey, that's the economic term.
01:23This could very well happen with gas prices, too, right?
01:26If it goes above a certain level, people stop using whatever this good is.
01:31And I guess we found the point with Doritos.
01:34Although $7.
01:36I don't know.
01:37You're not at your demand destruction point.
01:39Your demand is not destroyed.
01:40It might still be worth it.
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