In practice, this almost never happens. There isn't a fixed supply of bread. When the price of bread goes up, the following all happen: - Bakers will bake more

In practice, this almost never happens. There isn't a fixed supply of bread. When the price of bread goes up, the following all happen: - Bakers will bake more bread - People from an area with cheaper bread will travel farther to sell bread where it's more expensive - Individuals will decide to bake bread for themselves - Companies that don't bake bread but that have the capability of baking bread (either directly, or with minor changes) will start baking bread. All these activities happen in proportion to the price increase, increasing volume and putting pressure on prices to go back down. And this article describes the data showing that this happens.