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So you say demand will increase and production will have to catch up. I think prices will go up, not down in such case.
by ajuc 11y ago
So you say demand will increase and production will have to catch up. I think prices will go up, not down in such case.
- rorykoehler 11y agoHow did you come to that conclusion? We can easily increase production to meet demand. In fact supply is a largely solved problem. The new problem is lack of demand.
- s73v3r 11y agoDepends on how elastic the demand for the good is. Not everything can handle a large price hike like that. McDonald's, for instance, wouldn't be able to jack up their prices a whole lot, because then people simply wouldn't go there.