>"Induced Demand" is a misnomer, as the demand was always there at the given price. That's not necessarily true. Suppose you're the government and you produce

>"Induced Demand" is a misnomer, as the demand was always there at the given price. That's not necessarily true. Suppose you're the government and you produce food for free, and every year people eat everything you make, and everyone is well-fed. You decide you want to prepare for a famine, so this year you start more farms such that next year you make 20% more food. The first two months you're able to save, but when people see that there's more food available, they change their habits and start doing even more exercise than before, and so they eat more until they eat all the food every month again.