[elpescado]

> I'm not sure this statement makes that much sense, won't demand always go up when prices drop, and drop off when it goes up? Demand does not exist in abstract, if I could get an iPhone 13 pro for $10 I would take 5, if it costs $2,000 I will take 0. If oil cost $1 a gallon instead of $4, won't the demand increase? And if it is $10 a gallon won't the demand decrease?

Does it work like that in real world? If gas price doubles does that mean that folks who commute by car go only half way to work or stay at home every other day? If an iPhone costs $10, why would you buy 5 of them? What would you do with extra four? Browse hn on five screens at once?

Supply and demand are not infinitely elastic, as some like to think.

[wronglyprepaid]

> If gas price doubles does that mean that folks who commute by car go only half way to work or stay at home every other day?

There are a lot of behavior that can be changed, not all of it, but people could skip some trips, maybe only 10% - but it is not 0%.

> If an iPhone costs $10, why would you buy 5 of them?

I have 5 umbrellas but just one body. I sometimes forget it at some place, or misplace it. Nice to have a spare when I need one. I could then leave an iPhone at work for when my battery runs out for example.

> Supply and demand are not infinitely elastic, as some like to think.

Fair enough, my examples were a bit contrived and absurd, but my point is more just that neither supply nor demand is fixed. But yes they are not infinitely elastic, but they are somewhat elastic.