4 ms·
You're right that if you've got a sinking ship with 1000 passengers, and only 500 seats in lifeboats, no means of allocation will make 1000 less than 500. But
by michaelt 4y ago
You're right that if you've got a sinking ship with 1000 passengers, and only 500 seats in lifeboats, no means of allocation will make 1000 less than 500.
But in almost all markets, higher prices reduce demand. I don't own a Rolex because they cost too much, I settle for a Casio instead. Does that mean there's a Rolex shortage?
- nradov 4y agoLuxury goods like Rolex watches are kind of a bad example because manufacturers intentionally produce less than they could in order to create artificial scarcity.