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Basic supply and demand economics. Low supply means high prices but it also means low unit sales, and this is rarely the most profitable state. Once supply reco
by LeoPanthera 5y ago
Basic supply and demand economics. Low supply means high prices but it also means low unit sales, and this is rarely the most profitable state. Once supply recovers, and it will recover, supply will increase.
Hey, this "supply and demand" curve picture on Wikipedia is tiny, anyone got a freely licensed higher resolution one they can upload?
https://en.wikipedia.org/wiki/File:Fig5_Supply_and_demand_curves.jpg https://en.wikipedia.org/wiki/File:Fig5_Supply_and_demand_cu...
- ComputerGuru 5y agoFree money throws a wrench in that because you’ll have parties willing to spend drastically more than a product is worth (be it due to some combination of one or more of free government money, lack of common sense, or obscene wealth) giving suppliers an opportunity to raise prices beyond what they normally could to compensate for the lost profit margins due to low unit sales. It’s a wacky world out there right now.
- thomasjudge 5y agoLike in the real estate market right now in a lot of places in the US