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  #11  
Old 03-14-2020, 10:48 PM
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The toilet paper factory isn't going to make more toilet paper unless prices rise. They might have to install another production line to meet crisis demand and a higher price will incentivize them to do so.

The alternative is that the toilet paper just doesn't get made and nobody gets any other then those who bought first.
The amount of toilet paper made isnít the problem. And making more than normal isnít going to fix the problem.

In the next couple of weeks or months there will be a vast stockpile of tp since people will be buying less of it than normal for a while.
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Old 03-14-2020, 10:54 PM
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The amount of toilet paper made isnít the problem. And making more than normal isnít going to fix the problem.

In the next couple of weeks or months there will be a vast stockpile of tp since people will be buying less of it than normal for a while.
Just think of toilet paper as a variable, one that can be replaced with any good in short supply, like...insulin or something.
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  #13  
Old 03-14-2020, 10:57 PM
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Supply/demand shocks aren't fixed by sudden price surges. For insulin, either.
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Old 03-14-2020, 11:01 PM
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Also, people don't die from lack of toilet paper. Certainly not if they have adequate soap and water.
True
Unfortunately soap and hand sanitizer are things that CS is promoting price gouging.
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  #15  
Old 03-14-2020, 11:02 PM
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Just think of toilet paper as a variable, one that can be replaced with any good in short supply, like...insulin or something.
Maybe if we are talking about some sort of localized demand shock. Like generators after a hurricane or something. Higher prices may well bring a higher supply in a reasonably timely manner then.
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Old 03-14-2020, 11:03 PM
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Not to be ghoulish, but you know Bath & Body Works is thanking its lucky stars for this pandemic. They sell hand soap, among other things.
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  #17  
Old 03-14-2020, 11:03 PM
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True
Unfortunately soap and hand sanitizer are things that CS is promoting price gouging.
Well to meet demand you might need your workers to work overtime, and truckers need to get paid for expedited shipping, and they'll do it if they can get paid.
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  #18  
Old 03-14-2020, 11:09 PM
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Well to meet demand you might need your workers to work overtime, and truckers need to get paid for expedited shipping, and they'll do it if they can get paid.
yeah and those workers are going to need that overtime money, so that they can afford, among other things, extortionately priced hand sanitizer.
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Old 03-14-2020, 11:12 PM
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yeah and those workers are going to need that overtime money, so that they can afford, among other things, extortionately priced hand sanitizer.
Or they hire more workers, drawing from the ranks of the soon-to-be-unemployed.
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Old 03-14-2020, 11:13 PM
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yeah and those workers are going to need that overtime money, so that they can afford, among other things, extortionately priced hand sanitizer.
I would think so. I mean for example, say you're working already 50 hours a week at your actuary job and all of a sudden a crisis happens and your employer says, hey man you need to ramp that number up to 80, your country needs you and your triangles!

Most people just aren't going to do that unless they get the overtime. You'll most likely refuse and if you can't sell your triangles to the highest bidder, they just go to first-come-first serve.
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