Why is it that in economics, when demand is greater than supply, prices “automatically” go up? Isn’t it sellers that decide to raise prices because buyers are willing to pay more? Couldn’t sellers choose to not raise prices?
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Look at concert tickets. What happens when they go on sale?
Scalpers buy them all up and resell them at higher prices.
That’s what happens when demand is high but sellers don’t raise the price. If they don’t, somebody else will.
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