Question:
If we believe that the laws of supply and demand always hold, why is it that the "popular" gifts for the holidays always sell out early?
Doesn't the quantity supplied always equal the quantity demanded?
a. Pick an item that is for sale
b. Describe the market
c. Does quantity supplied equal quantity demanded most of the time? If not, what could cause the discrepancy? Is it government interference?
d. Is it that producers were too short-sighted and didn't estimate expected demand accordingly?