Supply & Demand Done Got Broke

Once upon a time...
  • a bottomless cup of coffee in a restaurant cost 25.  Then there was a really bad shortage of coffee... and the price went up to $1.00.  A year later... the coffee crop was back to normal and has remained stable since.

  • a candy bar cost 10.   Then there was a really bad sugar shortage... and the price went up to 75.  A year later... the sugar supply was back to normal and has remained stable since.

In both cases, the high prices (then justified as a result of the shortage of raw materials)... remained the same. So what happened to the Law of Supply & Demand?

I'll tell you what happened.  The sellers saw that everyone was willing to pay $1.00 for a 25 cup of coffee and 75 for a (smaller) 10 candy bar.

I no longer get coffee in a restaurant... nor do I buy candy bars.

I'm all for making a reasonable profit... but rip-off is not my idea of reasonable.  Please... don't tell me it's inflation - 400%?  750%?

 
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