How does shortage of goods and services exploit the consumers?

The basic law that works here is the law of supply and
demand. If the demand is great and there is a lot of supply, then prices will be pretty
low. For example, demand for corn products is great and there is a lot of corn in
America. So, costs are low. If demand is great and there is a lack of supply, then
prices will be high. And the greater the demand, the greater the price. For example,
when Apple first announced the iphone, they did not make enough and the demand was
great. So, prices went through the roof!

Based on the above
law of supply and demand, let's now talk of exploitation of the consumer. The most
obvious way for companies to exploit consumer is by deliberately withholding supplies to
raise prices. Another way we see this is through monopolies. If a company completely
takes over a field, then it can charge as much as it wants. It controls supply
completely. In this way, the customer is at the mercy of that company. Finally, here is
another variation. Some companies give a product at a very low price to make customers
addicted only to raise prices in the end.