Re:Supply Constraints Do Not Explain House Price, Quantity G...
by bluGill on Wednesday March 19, 2025 @05:36PM
(#43417568)
> We're making more and more luxury cars, why is the price not coming down?
Because supply and demand are carefully watched. Manufactures are not just making more and more luxury cars, they carefully study the market and adjust supply so that their price makes sense. Remember all the materials, labor, engineering, management and other overhead sets a floor to price of a car, they carefully watch the numbers to make them work. They might be making more cars, but they are not making infinitely more.
Because supply and demand are carefully watched. Manufactures are not just making more and more luxury cars, they carefully study the market and adjust supply so that their price makes sense. Remember all the materials, labor, engineering, management and other overhead sets a floor to price of a car, they carefully watch the numbers to make them work. They might be making more cars, but they are not making infinitely more.