When a product is in high demand, a manufacturer is obligated to charge a little more to pay back the investors who took a risk on the product.
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Elaine is consulting a rabbi, who offers her Snackwell's Cookies. He says he fears that knowing they're fat free may cause people to overindulge. Making them fat-free lowers the price of eating them; consumers respond by eating more.
A seller of hula hoops finds that no one is purchasing his items, so he lowers the price in an attempt to increase demand. His price changes don't make a difference. When a boy finds a stray hula hoop and plays with it in front of his peers, all of the kids suddenly want one, and the hula hoop becomes a desireable product.