[Callmenorm]

You're missing his point. Prices steadily go up as demand increases so suppliers bring on more (expensive) capacity to meet. You never get to the failure point unless demand exceeds all possible supply capacity. He just took this argument to the extreme.

[alextheparrot]

I believe I completely understood his point and my comment responded to that the price does not approach infinity, because no one will logically pay a price approaching infinity. The root cause of this is that I will only purchase something if I think the utility obtained from having it is equal to or greater than the utility my currency could purchase elsewhere. I don't have a perfectly inelastic demand for electricity.

Even if a good is quite scarce (Such as electricity in a blackout), the price is dependent on demand. Low supply does not inherently make a good expensive.

[euyyn]

The demand isn't going to increase in a blackout, it's the supply that diminishes, bringing price up. But the curve isn't asymptotic: the price doesn't go to infinity as the supply goes to zero.