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by wbsss4412 1431 days ago
In your example, demand doesn’t decrease, it stays stable while supply increases.

If anything you don’t want demand destruction if we are anticipating such a drastic increase in supply.

1 comments

right, it is relative in a way too right? because for the factory and parts suppliers the demand is what comes down the supply chain... So one day they will be producing and getting parts for 10 cars and the next time nothing at all. So the part suppliers will see the demand of its production to fall, even though there might still be 1 person buying one car.