ChatGPT mentions some factors for why suppliers didn't just raise prices until the demand met the supply:
1. The industry often has long term contracts that fixes prices months or years in advance.
2. Even without such contracts, the value of stable, long-term relationships with major customers made suppliers keep prices stable.
3. Governments intervened to prevent "price gouging" for favored industries, and even without such intervention, perceived price gouging can be more damaging long term than is made up for by near term profits.
So you're right that there was a real shortage for a time.
But note my original caveat: "On a market with free pricing". Unfree pricing (contracts/regulation) was one factor.
But PR considerations, which I admit I didn't think of, was also a factor. So I learned something here!
ChatGPT mentions some factors for why suppliers didn't just raise prices until the demand met the supply:
1. The industry often has long term contracts that fixes prices months or years in advance.
2. Even without such contracts, the value of stable, long-term relationships with major customers made suppliers keep prices stable.
3. Governments intervened to prevent "price gouging" for favored industries, and even without such intervention, perceived price gouging can be more damaging long term than is made up for by near term profits.
So you're right that there was a real shortage for a time.
But note my original caveat: "On a market with free pricing". Unfree pricing (contracts/regulation) was one factor.
But PR considerations, which I admit I didn't think of, was also a factor. So I learned something here!