3 ms·

TBH, people routinely overlook the other two factors, supply and underlying cost. Sometimes increases in demand can both increase supply and decrease cost.

• philwelch 3y ago
  “Underlying cost” is part of the supply curve.
  • _ea1k 3y ago
    Ok, imagine the cost is driven by underutilized fixed costs. How does the supply curve model the decrease in cost as demand increases?