I have luxury clothes factory that loses money because their products are not selling despite luxury clothes being high demand with something like 20 produced and 80 in demand. How do i fix situation?
If you didn't have that demand/desire then luxury needs would be worthless and really cheap to buy (which is a bit counter-intuitive considering they are "luxuries").Then the price finding mechanism is kinda ditzy, no? If people desire a good, but don't buy it because they can't afford it, then that isn't actually demand. Only desire that can be statisfied can actually constitute a demand. If how you describe it is really how the price finding mechanism works than that would certainly explain a lot!