Comment Re:A plateau not good enough (Score 1) 640
You seem to be very anti-capitalist. Maybe I'm reading you wrong.
Yes, this is how it works. It's also called the law of supply and demand. When demand is high the price goes up. This will signal to other suppliers that this is a good market to enter. More supply will satisfy demand and prices will go down. A free market works like this. Now in a controlled economy the government sets the price. There is no signal to other suppliers and shortages abound. Why do you think communist economies are so poor?If production rate is flat while demand is growing, you get a supply crunch. Buyers bid up the price, and sellers make out like bandits.