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The simplistic view is correct almost all time. Given a fixed demand curve, more supply leads to lower prices and less supply leads to higher prices. Exceptions
by tlb 9y ago
The simplistic view is correct almost all time. Given a fixed demand curve, more supply leads to lower prices and less supply leads to higher prices. Exceptions can exist in special circumstances, but they are rare and usually short-term.
- s73v3r_ 9y agoNot when it comes to human behavior it's not. The simplistic view tends to assume everyone is a perfectly rational actor, and that there aren't other forces at play.