Why do prices go up when a product sells well?
Update: 2025-11-03
Description
Alongside the Chicago Sun-Times, we’re gathering your questions about all things money and finances.
Then each week, we get your questions answered by the people who know best.
This week, we’ve got this question from Murray who says:
Please explain supply and demand. Why is it that if a manufacturer has produced a product and has established a cost to manufacture and then sells more than anticipated, the asking/selling price increases because there is a “limited supply"? The cost to manufacture has NOT increased due to scarcity. Why the price increase? Is this the philosophy of “demand what the market will bear”?
To find out, we called up an expert.
HOST: LANE
Then each week, we get your questions answered by the people who know best.
This week, we’ve got this question from Murray who says:
Please explain supply and demand. Why is it that if a manufacturer has produced a product and has established a cost to manufacture and then sells more than anticipated, the asking/selling price increases because there is a “limited supply"? The cost to manufacture has NOT increased due to scarcity. Why the price increase? Is this the philosophy of “demand what the market will bear”?
To find out, we called up an expert.
HOST: LANE
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