Smashchu2 on 28 February 2010
| mike_intellivision said: If you are Nintendo, you probably secretly like this situation because the supply issues only help increase demand. |
An decrease in supply increases the price, but quantity falls. If Nintendo doesn't increase the price, then shortages aren't good for them.
Also, a decrease in price is not an increase in demand. Itr only increases the quanity demanded for the market. All it does will move down the supply line, but this means sales are dependent on price. Nintendo has done better to focus on software as it creates new demand curves rather then just move along the same one.
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