It doesn’t the Perfect Feliz Navidad Putos Ugly Christmas Shirt exist. The factories receive a certain number of orders from the wholesalers to satisfy. The demands of the pharmacies. They don’t make excess amounts just to have them sit idly on shelves. That would tie up a huge amount of working capital. When this happens there won’t be enough medication to meet the demand in the short run and prices will go up. So that probably means some people will choose not to renew their prescriptions – likely people with mild depression or low income. Some of these people might request that their doctor prescribe them a cheaper alternative.
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The Perfect Feliz Navidad Putos Ugly Christmas Shirts will lead. The wholesalers to purchase more from the factories. If the factories don’t have the excess capacity, they might need to produce less of something else to meet the demand. This could mean more investment in equipment from the factories or a reduction in other drugs. That’s all basic economics and it explains exactly why a surge in demand would lead to a surge in prices. Retailers aren’t sitting on huge stockpiles of excess merchandise because that’s inefficient. That sort of thing is done in Venezuela, and you end up with food rotting in warehouses or expired drugs because the government doesn’t respond to demand properly.
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