During the Spring Festival, the price elasticity of commodity demand is relatively small.
For example, your company has only one canteen, and you have to eat in it. The price of this canteen may be higher than that outside, because you have to eat no matter how high the price is.
Similarly, during the Spring Festival, everyone has to find a way to spend the next year. No matter how high the price of new year's goods is, you have to buy some. For the flexibility of commodity demand during the Spring Festival, merchants can increase profits by raising prices.
Moreover, through the method of mathematical modeling, we can know that for goods with small demand elasticity, the price increase of manufacturers will increase profits; For goods with high demand elasticity, reducing prices will increase profits. Therefore, merchants choose to raise prices during the Spring Festival.