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And yet... points Arizona Ice tea. Unchanging price, changing costs. I think what everybody is missing is the 'tends' qualifier. Price tends to rise with i

And yet... points Arizona Ice tea. Unchanging price, changing costs. I think what everybody is missing is the 'tends' qualifier. Price tends to rise with increased demand; price tends to drop with increased supply. It's true, but simplified, and can be influenced by a near infinite amount of other factors, like most other behavioral laws.

simulate-me 5y ago
> Arizona Ice tea. Unchanging price, changing costs. This just means the demand curve is very price sensitive, but it doesn't mean the supply curve doesn't exist. There is an element of survivorship bias to all of this. Products on the market exist because there is a point the supply and demand curves intersect. It's totally that the price people are willing to pay for Arizona ice tea will be less than the cost to produce it, at which point Arizona ice tea will cease to exist.