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Shortages drive prices up until enough people are priced out that those with money can buy as much as they want.
By the way, supply and demand curves aren’t real. It’s been mathematically proven for more than 40 years that the excess demand curve, which economists still believe always curves down, can curve back up and down again as price increases, which means there are possibly many price-quantity equilibria.
It’s been mathematically proven for more than 40 years that the excess demand curve, which economists still believe always curves down, can curve back up and down again as price increases, which means there are possibly many price-quantity equilibria.
Sonnenschein-Mantel-Debreu theorem?
The supply and demand curves are based on how individuals act, but combining them can produce complicated curves unless everyone has identical preferences and equal amounts of money and therefore all behave identically.
