Quote from: bitcoin2cash on September 14, 2011, 02:44:46 AM

Quote from: FirstAscent on September 14, 2011, 02:28:17 AM

Also, the answer you gave only addresses price dynamics. It does not explore how human behavior changes as a result.

Yes it does. Notice where I said "demand drops". Here's a good example. It used to be the case that teenagers would spend their weekends driving around aimlessly. When gas prices rose, many of those teenagers stopped doing it. If that doesn't address human behavior, I don't know what does.

That's half of it. Except your observation and prediction are in fact wrong for the half you've chosen to discuss. So what are the two halves?

The consumers: you've given an answer regarding consumers, although it's wrong.
The harvesters: you've failed to address the behavior of the harvesters, completely.

Note that the term suppliers isn't even mentioned. They're not really relevant here if they aren't also the harvesters. If the harvesters are also the suppliers, then we'll just call them harvesters, because it's their harvesting behavior we're interested in.

So, why, in the presence of scarcity, is your explanation of consumer behavior irrelevant? And how is the harvesters' behavior altered as well?