What is ‘pent-up demand? Economically speaking, it is the demand for a product or service that has been reduced or eliminated in the free market system. What happens when the supply of the product or service becomes available again? A rush to buy? Hoarding?
What is the solution? Increasing supply by accelerating the means of production. Distribution management to meet demand. The free market system is flexible allowing supply to meet demand.
The techniques such as rationing, regulations, or price controls tend to disrupt this free market system.
So, in our covid19 present situation, what are the items or services that you are yearning to have? Do you want it all? All at once? Instant gratification because you have been denied them for such a long time? Well, these are your ‘pent-up’ demands. Make a wish list of these items or services. Prioritize this list. Remember, these personal demands can’t be satisfied until there is sufficient supply for these demands. Some items will come to the free market sooner than others. They each must adjust to this new paradigm. We must have patience. This is the reality today.
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