Stupid person asks in Let It Out in the fishwarp this morning:
Why does a price increase always fix a gasoline shortage?
Clearly this person is an Øbama Demoncrap who flunked high school econ.
Shortages occur when demand outstrips supply. When that happens, people try to get by with less of the product that is in short supply because their dollars don't buy as much of the product as it used to. It's related to why people buy the store brand instead of the fancy national brand -- because they can get more for their money.
In fairness, the question is stated incorrectly. Rising prices don't fix a commodity shortage, but they do condition public behavior regarding demand for the commodity -- which in turn creates the illusion that there is plenty of supply. When real supply actually increases (e.g., more oil is discovered, more refineries are built in California, etc.), then and only then will prices come down.
Another jackass writes:
Would somebody please tell Bob Knight that he isn't really that important.
Only someone who is either insecure or jealous of Bob Knight's success would ask this question. I'm guessing a Purdue grad. Or maybe a Mike Davis or Kelvin Sampson fan.
