This is what’s actually meant by the “invisible hand.” They pushed prices past what the market was willing to bear, and lost sales as people made do without. Now they’re adjusting prices back down, because it makes more sense to accept a smaller margin and make it up in volume. It’s a textbook example of the demand curve in action.

When market-based systems work, they work fairly elegantly. It’s the cases where they break down that I get concerned with.