
Elevated prices for a good signal to the market that it’s worth it to bring more of that good in low supply to the area where demand is so high. When the supply meets or exceeds the demand from that added supply then the prices stop rising and potentially even drop. If prices are kept the same then that will cause shortages and lengthen the period of scarcity since there’s not as much incentive to bring the good to that area when you aren’t selling it for much