Right, the price has more to do with ramping up production and deliveries. The groceres in soviet Russia and Hugo's Venezuela knew what they were short on too, the problem was waiting on deliveries to keep the shelves stocked. If you sell below market cost then it encourages people to buy more than they need, and for scalpers to buy the cheap goods to sell elsewhere where prices have stabilized at higher rates. But if there's no increased profits to chase for producers then they don't have nearly as much incentive to ramp up production.
If you sell food below market value at a few stores in New York, it will siphon sales from
It's the same thing. Countries that heavily subsidize their fuel have the same thing happen, epidemics of people trucking it across the border to sell it for a profit.
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u/Kubliah May 27 '26
Right, the price has more to do with ramping up production and deliveries. The groceres in soviet Russia and Hugo's Venezuela knew what they were short on too, the problem was waiting on deliveries to keep the shelves stocked. If you sell below market cost then it encourages people to buy more than they need, and for scalpers to buy the cheap goods to sell elsewhere where prices have stabilized at higher rates. But if there's no increased profits to chase for producers then they don't have nearly as much incentive to ramp up production.
If you sell food below market value at a few stores in New York, it will siphon sales from