I‘m just sobbing over year old limited vinyl only releases going for x times the original price second hand. Wouldn‘t the artist themself make more money if i could still buy it digitally? Same thing for sneakers etc
In: 12
Consider: suppose you are the only person who can supply some item that people want to buy. If you make fewer available, you will sell fewer, but the price will go up. If the price goes up enough, you’ll make more profit even selling fewer items. If the price does not go up enough, you will make more profit per item, but less total profit.
As a monopoly supplier, you will choose to sell just enough to maximize your profit. If you do the math, it turns out this is always a smaller supply than would come from an open market where many people could supply the item in question.
Latest Answers