We’re gathering your questions about all things money and finances. Then we get your questions answered by the people who know best.

Murray asked how supply and demand works.

Why is it that if a manufacturer has produced a product and has established a cost to manufacture and then sells more than anticipated, the asking/selling price increases because there is a “limited supply?” The cost to manufacture has not increased due to scarcity. Why the price increase? Is this the philosophy of “demand what the market will bear?”

Tom Healy, a lecturer in the department of finance at the University of Illinois Chicago, said the short answer is yes.

“We see this all the time,” he said. “This is why refreshments at sporting events are several times what they cost you at the grocery store. This is

See Full Page