>Why is there no increased demand-driven supply on these things?
Most American states prohibit price hikes during a disaster, which prevents companies from producing more during high demand.
Most American states prohibit price hikes during a disaster, which prevents companies from producing more during high demand.
Sorry, but how exactly does that follow?
Normally shortages lead to increased price in the short term and in the long term lead to increased production and movement to the price equilibrium.
-oil shortage.
-Price is capped at $50/barrel to prevent “price gouging”.
-A bunch of shut down wells that are only profitable at $70+ stay shut down.
Do you see how price caps prevent supply with higher production cost from entering the market?