That stock in unaffected areas is allocated to the affected crisis area seems like an incredible benefit though. Seems to me that this is an example illustrates the opposite actually. Human demand might be infinite but supply is always limited
Also, high prices sends information to producers that riskily ramping up or shifting production can be worth it. Might not be worth it at a lower price point.
Imagine if, in January before Covid-19 had spread outside China, I brought up all the stocks of N95 masks at US DIY retailers and sold them to hospitals in China.
Heartwarming international solidarity and the power of the market in action? Or capitalists selling the rope that will hang them?
Also, high prices sends information to producers that riskily ramping up or shifting production can be worth it. Might not be worth it at a lower price point.