I’m thinking about the meat industry for example. Sure, there are a lot of farmers, sure they have a lot of animals on each farm, but to me it seems people consume meat at a higher pace than an animal has time to grow to be an adult before it is made food.
Same I am wondering for bananas. It takes some time for it to grow, and if millions are a regular consumers, how can we still have so much available?
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>Same I am wondering for bananas. It takes some time for it to grow, and if millions are a regular consumers, how can we still have so much available?
The gist is that a lot of work goes into ~~guessing~~forecasting what people will want to eat, drink, buy, etc. in the amount of time it takes to make the good. If demand spikes, then that’s a problem because you can’t just double banana production, for example. That’s where the pricing comes in. If demand goes up, supply stays the same, it has two effects. In the short term, it helps manage the short supply. Someone who bought a whole pack of bananas a week and thew out 2-3 bad ones on Friday will suddenly stop doing that, they’ll buy less. People will also seek other, cheaper alternatives. In the long term, it incents other suppliers to enter the market and increase the supply, which will eventually drive down price, even if not to the original levels.
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