Retailers may create artificial scarcity of goods By

Retailers may create artificial scarcity of goods by hoarding the products or under producing them. When retailers hoard products, they buy up large quantities of a particular product and hold it back from the market, creating an artificial shortage. This can lead to an increase in demand and subsequently a higher price for the product. Alternatively, retailers may intentionally under produce a product to create a scarcity, thereby increasing demand and price. By limiting the supply of a product, retailers can create a perception of rarity and exclusivity, making it more desirable to consumers who are willing to pay a premium price. Processing and price hiking are not necessarily methods that retailers use to create artificial scarcity of goods. While processing can impact the availability of a product, it is not typically done intentionally to create scarcity. Price hiking is often a result of scarcity, rather than a method to create it.