alt Hacker NewsNot to be snarky, but the CEO is saying that the supply will be tight for years. I know Econ 101 is over simplified but I do recall that when you reduce supply and demand stays constant, or increases, the price goes up.
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mcv • today at 3:34 PM
Exactly. Demand won't be going down for quite some time, so prices will stay high unless supply goes up. So where is the new competition entering the market?
If there's no competition entering the market, wouldn't that be a clear sign that this is not a free market but effectively a cartel?
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I also recall some Econ 101, but I seem to recall a little but more than you since I also recall that the price goes up when the supply stays constant or even increases but the demand increases faster than the supply increases.
The CEO is saying that that is the situation we are in.
Demand has increased massively over a short time. Supply cannot increase as rapidly because for big demand increases it involves building new factories and equipment which takes significant time.
The CEO says that their new stuff will start coming online in 2028 but they can't forecast when supply will catch up.