[thomassmith65]

Worded differently: the less captive the audience, the less significant is the issue of price-gauging.

[robnado]

Worded differently: when the demand curve is inelastic, changes in price don’t change demand much in the short term. For more elastic curves, higher prices reduce demand a lot more, which incentivizes setting a lower price if businesses are to optimize profit.

[anticensor]

Yeah, pricing-based manipulation works only best if supply is completely inelastic but demand is completely elastic.