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Reply #26: No, they are going to pass up an opportunity to make money on a scarce commodity [View All]

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AngryAmish Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jul-08-08 10:04 AM
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26. No, they are going to pass up an opportunity to make money on a scarce commodity
Edited on Tue Jul-08-08 10:11 AM by AngryAmish
This is the way it works: price is nothing but a rationing device. If something is rare (or perceived as rare) the the price goes up, because more people are bidding on that object/service/etc.

So small fuel efficient cars are going up in desirability because of gas prices. There is a finite amount of them. Car makers can make tons of them - which they probably can't do because of retooling issues, etc. So since the supply is limited the price goes up.
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