1 min readJan 31, 2018
For example, in the case of a supply increase, take the oft-cited example of tulip mania, where the price of tulips in the Netherlands got so high that everyone grew as many as they could the next year and flooded the market with enough tulips to overwhelm even robust demand. That is, there was nothing rare about tulips, at least in the medium-term of 1+ year.