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That law of economics applies to a market of products and assumes that supply decreases as additional manufacturers of the product find it less profitable at a
by shalmanese 5y ago
That law of economics applies to a market of products and assumes that supply decreases as additional manufacturers of the product find it less profitable at a given price and drop out of the market.
When applied to a single consumer packaged good product, the supply curve is 0 at a point below the manufacturing cost and then rises to infinite at some point shortly above that price.
eg: If I an providing dollar bills and it costs 10 cents for me ship one to you, I will sell you an infinite quantity of them if you're willing to buy them at $1.11.
Coca Cola's willingness to supply Coke at $2 is infinite, if demand doubled overnight, CC would build whatever factories it needs to meet that demand and would do it for each successive doubling until it started hitting material planetary constraints like consuming all of the world's sugar.