Demand-Induced Supply

When latent demand is unleashed by infrastructure, consumption expands at a pace far exceeding expectations, which in turn forces suppliers to continuously expand capacity. Demand and supply spiral upward together, progressively raising the equilibrium point.

Read the daily articles behind this idea on the Chinese edition.

Related principles

• → Links
  Expectation-Reality Signal Mismatch
• → Links
  Infrastructure Network Effects
• → Links
  Threshold Reduction & Market Expansion Effect
• ↺ Counters
  Supply-Demand Inversion / Build-First-Ask-Questions-Later
• → Links
  Agent Economy
• ↗ Extends
  Flow Signal Lag
• → Links
  Wright's Law
• → Links
  Platform Leverage
• → Links
  Service Sector Structural Upgrade as Dual-Circulation Engine
• → Links
  Center of Gravity Shift