Maybe we have both? A price hike won’t necessarily fix a shortage, right? (Price hikes didn’t exactly fix n95 mask demand, for example.) The video in the artic

Maybe we have both? A price hike won’t necessarily fix a shortage, right? (Price hikes didn’t exactly fix n95 mask demand, for example.) The video in the article explains that the auto industry stepped out of the queue by cancelling all their orders. Now demand is high and they want to cut back in line. So this story about auto makers is taking advantage of a loose and slightly misleading use of the word “shortage”. It implies there’s only a supply-side shortage, when in fact car makers dropped demand before and are now spiking demand. Plus a chip fab can take months, and I have no idea what the lead time on ordering one is, but it’s probably not zero, right? Especially with other customers in the queue. The process of ordering fuel is somewhat different and doesn’t need to serialize the buyers.