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Old 12-21-2020, 08:40 AM
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Quote:
Originally Posted by chalupacollects View Post
What other industry raises prices because they have "too much business," and are trying to drive customers away....
I would think every business that has more orders at current prices than it can satisfy, raises its prices. Higher prices help "maximize" profits in the short run, help allocate the available capacity to the customers that value it the highest (it is misleading, but accurate to view this as "trying to drive customers away"), and provide the incentive and investable capital necessary to expand capacity in the longer term. I'm not sure why you view this as inconsistent with Economics 101.
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