3 ms·

It seems to me like both are required. Supply is more elastic, but only in the medium term.

• thaumasiotes 6y ago
  > It seems to me like both are required. That's a fair point. With inelastic demand and elastic supply, you'd expect to see expanding supply, not skyrocketing prices. But if we're defining the circumstances to be a "shortage", are we defining away the possibility of expanding supply?
  • foota 6y ago
    There can be a short term shortage, which doesn't mean supply never arrives, just that it'll take a bit.