How Can Business Firms Survive if Prices Soar?

We're told that falling prices must threaten business profitability and even lead to mass bankruptcies. How can business firms survive, we're told, if the selling prices of their goods suddenly fall? Here's how you answer it: If the deflation is anticipated, there's no problem. So businesses will remain just as profitable as they would have been if prices had risen or stayed the same. Even if the candy bar will be cheaper than sane people don't refuse to purchase one dollar cup of coffee because they expect the price to fall to 95 cents three years from now.