Real-World Disruptions

During the 2021 semiconductor shortage, demand for chips surged while supply collapsed from factory shutdowns and shipping chaos. Car prices spiked because modern vehicles depend on hundreds of chips each. When even one cheap chip was missing, a whole assembly line could grind to a halt.

Used cars became more expensive than new ones — a flip that made no sense until you saw the supply constraints behind it. The pandemic created dozens of similar distortions, from toilet paper hoarding to soaring lumber prices.