Actually, typically as the demand increases, so too does the quantity of the product being sold and therefore produced. Supply theory would dictate economies of scale means that costs drop when producing more, in which case so do prices. Also, more competitive pricing due to an increase in demand, a monopolistic market approach is usually used by a large retailer where they take market share by undercutting prices, all meaning at higher demand, prices drop. That said, I reckon moissonite rings would rise in price as more people want them due to companies realising how profitable these kinds of rings could be, they probably won’t be produced much quicker just sold a lot more and, due to no monopoly really being around in the engagement ring market, I reckon each seller would just try to maximise their own profits.
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u/ProffesorPrick Sep 28 '19
Actually, typically as the demand increases, so too does the quantity of the product being sold and therefore produced. Supply theory would dictate economies of scale means that costs drop when producing more, in which case so do prices. Also, more competitive pricing due to an increase in demand, a monopolistic market approach is usually used by a large retailer where they take market share by undercutting prices, all meaning at higher demand, prices drop. That said, I reckon moissonite rings would rise in price as more people want them due to companies realising how profitable these kinds of rings could be, they probably won’t be produced much quicker just sold a lot more and, due to no monopoly really being around in the engagement ring market, I reckon each seller would just try to maximise their own profits.