Keith Allaire (Little Upsilon)
| Wednesday, November 12, 2008 - 09:14 pm |
The market fluctuates around a fixed range of the "base price." The products you refer to are usually in a chronic state of mild shortage. Without any downward pressure on prices, the prices will fluctuate around the ceiling of about twice the "base price" for the product.
Otherwise, products in such shortage would reach destabilizing levels. Could you imagine if corps had to pay 3 million for a unit of electricity? It happened in real life...google enron california.