I want to sell those apples for $1 each. There’s plenty of apples to satisfy the demand. But let’s say that the market would bear a higher price, people would love to buy apples for $1 but due to a love of apples would be willing to pay up to $5.
In that scenario, the arbitrage opportunity still exists. Apple scalpers knowing that people would be willing to pay up to $5 would want to buy up lots of cheap apples and make the $4 profit that I’m leaving on the table for themselves.
And there’s just nothing we can do about it. I think we’d say that when the equilibrium price of $5 is met that the market is efficient but it’s a market where the producer of the good can fully satisfy the demand of the market for $X and yet the consumers have to pay $5X and this arbitragers get $4X.
It’s just interesting is all.