3 ms·
> if supply is restricted. Demand goes down Luxury goods can behave oddly, but in general demand is independent of supply. Restricting supply causes prices to
by _rpd 5y ago
> if supply is restricted. Demand goes down
Luxury goods can behave oddly, but in general demand is independent of supply. Restricting supply causes prices to rise, which lowers demand (at that high price). The underlying demand (at the lower price) remains constant.