A note from Daniel

In reality, both supply and demand can be manipulated. Some firms are large enough, in terms of their market share, that they can affect supply. Thus, the total supply of something is not necessarily equal to the available supply; firms can create artificial scarcity to increase the perceived value of their product. A great example of this is luxury goods.

Daniel The Great Mental Models, Volume 4, page 27 · December 5, 2024 Save to shelf
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