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> Imo the upping of price after demand increase is awful.

What? This is economics 101 of supply and demand. When demand exceeds supply, the price will increase. [0]

Just look at the stupidity of video card prices recently if you want a concrete, non-sale example of why price increases when supply cannot meet demand.

[0] http://www.investopedia.com/university/economics/economics3....

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From the article: "It’s not like they’re bumping it by a buck and making a little bit more money. They are really tanking sales and it kind of has a ripple effect to us, being a small company trying to do demand planning"

The relevant Econ 101 buzzword isn't "supply and demand," it's "agency problem".

Amazon is "tanking sales" unilaterally, while the supplier manages stock on assumptions of higher sales at the regular, lower price point.

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