You appear to not understand how markets work, free or otherwise. For the purposes of this conversation, consider starting your education here: https://en.wikipedia.org/wiki/Barriers_to_entry
At a longer timescale than very temporary supply shocks, I believe what I said is correct. The basic point is that if supply contracts, demand must contract as well, which in a free market happens via price increases and in an unfree market happens via shortages (i.e., the inability of buyers to obtain a good at a market-clearing price). If high barriers to entry are relevant in this context (obviously they very much exist in the memory industry!), then please enlighten me how, if you are capable of doing so without unconstructive snark.
But currently we are in a very temporary supply shock, and its called a shortage.
> in a free market happens via price increases and in an unfree market happens via shortages
Since people have earmarked purchases in advance the market isn't free, I'm not allowed to buy the ram another person already bought. Its the same how the texas electricity market works, prices reach infinity since there are more consumers that have already bought electricity than there is electricity left to provide, and you get a shortage.
Free markets with contracts aren't free since contracts creates constraints that results in shortages like this.
I have some bad news about how closely Econ 101 resembles the real world…
You appear to not understand how markets work, free or otherwise. For the purposes of this conversation, consider starting your education here: https://en.wikipedia.org/wiki/Barriers_to_entry
At a longer timescale than very temporary supply shocks, I believe what I said is correct. The basic point is that if supply contracts, demand must contract as well, which in a free market happens via price increases and in an unfree market happens via shortages (i.e., the inability of buyers to obtain a good at a market-clearing price). If high barriers to entry are relevant in this context (obviously they very much exist in the memory industry!), then please enlighten me how, if you are capable of doing so without unconstructive snark.
But currently we are in a very temporary supply shock, and its called a shortage.
> in a free market happens via price increases and in an unfree market happens via shortages
Since people have earmarked purchases in advance the market isn't free, I'm not allowed to buy the ram another person already bought. Its the same how the texas electricity market works, prices reach infinity since there are more consumers that have already bought electricity than there is electricity left to provide, and you get a shortage.
Free markets with contracts aren't free since contracts creates constraints that results in shortages like this.
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