Supply And Demand Quotes (1)

On the other hand, if a product catches on and more consumers want to buy it, they will bid up the price of the product. That in turn will once again provide the correct incentive to producers: to produce more. More entrepreneurs will enter the business, as long as there are no government-imposed barriers to competition, such as protectionism, monopoly franchises, and onerous licensing regulation -- all things that, as we will see in the next chapter, impede capitalism. The additional production and competition will eventually bring the price back down, perhaps even to a lower level than the original price. The process of competition also tents to improve the quality of the product, benefiting the consumer even more.

— Thomas DiLorenzo; How Capitalism Saved America