# What happens if an expensive thing goes into high supply for a limited time?

Let's say we have this Product A and it costs $1000, it's incredibly useful so it's in high demand, and we got it from a very-short limited-time "event" But then it goes available again in high supply for another same "event" but a bit more longer so now prices drop to let's say$400 and we have high supply of it now

What is the most probable way that it will rise in price again, if it just takes time how long do you think would it increase price. Let's just say the product is incredibly useful and alot of people really want it.

a lot of factors go into this. If a product in low supply and high demand suddenly becomes high in supply, with the same level of demand, as you mentioned, the price will in theory drop from \$1,000 to \$400. But the issue is the elisticity of demand, and the opportunity cost of selling the product at a lower price when demand rises. If the price is at \\$400, and demand increases as supply dwindles, but there are substitutes to the product, consumers will simply buy the substitute. If there is no substitute however, demand is high, and price elasticity is high, the price can rise fairly quickly in that scenario.