On the wake of the COVID-19 outbreak, consumption of some goods will increase. But, my question is why so?
My understanding is that, since aggregate demand for these goods has increased, supply can't keep up and therefore prices will increase to compensate for the increased usage of means of producion.
But, this will be done under the assumption that these suppliers actually want to satisfy the customers who can't buy these products anymore (due to shortage).
What if these suppliers don't increase production? Wouldn't the prices stay the same (with the outcome of people not finding enough goods)?