Post #2747949

2026-04-29 14:45 UTC

If there are 300 life jackets on a sinking ship being sold for $10 each on a ship with 300 people on it. No problem. No, imagine there are only 299 life jackets on that sinking ship. The 2 people who want the last life jacket might be willing to bid quite a bit higher than $10 for it, even though the supply only shrank by a fraction of a percent. In short, supply reduction doesn't carry enough information on its own to imply how much the price will increase. "How fucked are the customers competing to buy the remaining product if they can't get it" is the other key factor.

Replies (3)

@BradleyUffner@lemmy.world 2026-04-29 18:57

> If there are 300 life jackets on a sinking ship being sold for $10 each on a ship with 300 people on it. No problem. Ohh, I think there's a problem...

Open ##2747986
@Tiger666@lemmy.ca 2026-05-01 12:23

But the reality of your hypothetical situation would be fighting not bidding. So I call bullshit on your story. Supply is controlled, demand is artificially created and nurtured by capitalists because its a way to capture the market. We are all being manipulated into thinking they are honest when the exact opposite is true. The straights of Hormuz is closed because the fascists/capitalists are making money, plain and simple. Good luck living in their reality. Tell the fox that you are not hens and you might survive.

Open ##2747987
@yesman@lemmy.world 2026-04-29 14:54

What econ101 does to your brain is not normal. Into to Econ has y'all seeing a sinking ship and the first thing to ask is "how much is this life jacket worth in dollars"?

Open ##2747988