On the other hand, a doubled price of TP means that hoarding 10,000 packages becomes far more expensive, and less profitable.
Think market forces can solve all economic problems? Fine. But don't let that blind you to the fact that they have not done it yet and large numbers of people live in poverty and misery at the bad end of the economic scale.
Nope not true - that award goes to communist China
>China lifting more than 800 million people out of poverty since the start of its economic reform is a "great story in human history", World Bank President Jim Yong Kim said today, underlining that there is "lessons to be learned" from this Chinese experience.
https://www.business-standard.com/article/international/chin...
>Over the past three decades, China has successfully led the greatest poverty alleviation program in the history of the world. During that time, an estimated 500 million Chinese were lifted out of extreme poverty.
https://news.trust.org/item/20140408110950-ndf6e/
I'm sure I'll be downvoted for this for some reason or another
You can also calculate the situation for yourself. How much does a unit of toilet paper cost and how long does it last?
To me, the situation looks more like GP could be right and doubling the price of toilet paper doesn't kill people but rather stabilizes the situation. Besides, it's always possible to substitute the usage.
Before March I could always find TP with a ~40% discount. After March you couldn’t find a discount and the price was up about 10%.
I personally didn’t buy any because I already had plenty on hand since I had just bought it on sale. But it didn’t stop anyone else.
If you're looking for a market-based solution to hoarding, there are others besides price gouging. Amazon's approach, at least in areas where they have complete control like their pantry, fresh, and whole foods services, can serve as an example: They want happy customers. Happy customers return and buy more stuff. Customers who can't buy what they need because it's sold out due to hoarding are not happy. Amazon institutes a policy for orders through fresh/pantry/whole foods that limit TP purchases to a single package. More customers get needed supplies, stay happy return to buy more, make Amazon more money in the long term.
Supply/Demand price curves & price elasticity are not the only rational market-based methods of price discovery. More subtle and long-term considerations breed other strategies.