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by 8ytecoder 7 days ago
The usual argument is that as prices rise, demand will shrink and supply will rise to take advantage of the increased price.
2 comments

It all depends on the particular situation as to whether there is elasticity of supply or demand.

In this particular situation there is a bit of inelasticity of supply because it takes a long time to spin up a DRAM factory and if people believe it is temporary they won’t make the investment

Yes, it will. It's just delayed because fab buildout takes several years.