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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Katelew who wrote (64227)	5/7/2008 5:37:21 PM
From: TimF	Read Replies (1) \| Respond to of 541933

When you have a fixed quantity of something and more people who want it, the price will often go up all out of reason and/or relationship to the actual costs of production. Price increases in response to higher demand without higher supply is a feature not a bug. The actual costs of production are almost irrelevant except as a long term price floor (and in the short term they don't even provide that as the relationship of supply and demand can be such that the market clearing price, is lower than the, already largely sunk, production costs).