[citation][nom]laxduck26[/nom]Prices increase when demand increases in the short run because of limited supply. In the long run increased demand will lower prices when the market adjusts to increase overall production and takes advantage of economies of scale, but in the short run economies of scale in production cannot be realized and prices will be bid up by demanders for the limited supply of a good.[/citation]
Let's apply this capitalistic myth about mysterious competition to the situation when we have only 1 supplier, shall we?
Maybe we should apply it to the stuff produced by Movie/Music indurstry? With many suppliers, there must be some sort of competition right? Oh wait...
But maybe Pepsi vs Cola? Cola drink costing 50-80% more than directly pressed apple juice sounds just about right, right?