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Demand can't outpace supply forever. It can grow forever, but anything that's lucrative will eventually be sought out, and the price will come down. Labour in
by Mikeb85 10y ago
Demand can't outpace supply forever. It can grow forever, but anything that's lucrative will eventually be sought out, and the price will come down. Labour included. Also, someone will always be willing to undercut others, which is why the arbitrage condition is basically a law of economics, and always leads to a price equilibrium.