I recently got into an argument about the relationship between

>>1721772

Demand for any good fuels the supply of any good. You're both fucking morons

sounds pretty standard. If there were no demand there would be no need to increase supply.
Illegal goods arent comprised finite materials in this world so of course others are going to try and increase the total supply to reap the reward of inflation due to current demand

>>1721772

Drugs are a good with an inelastic demand so druggies need their drug for any price. The extreme demand will drive up the supply. You are correct

I never really understood this whole "demand creates supply" vs. "supply creates demand" argument.

Looking at the model, if demand shifts right, it will be profitable to create more supply. If supply shifts right, people at the margin who valued the item less than the old equilibrium price will be enticed to buy.

I have never been able to come to grips with the idea that one and only one influences the other.

>>1721867

do you need this explained in terms of coconuts?

>>1721874
I agree with him, it's weird to say that supply is "caused" by demand and vice versa. If there is a demand for a product, say coconuts, then coconuts will be sold, but they already existed. In other words: Moving the demand-curve doesn't move the supply-curve.

Then again, if there is a large demand for coconuts then people could invest money into the growth of more coconut-trees, which would increase the supply, but you could make a similar argument about how supply causes demand.