Supply and Demand

As demand for a commodity increases , supply will decrease and thereby prices will rise . If this persists prices will inflate in an ever increasing , never ending fashion.
But what is the reality ?
As supply decreases and prices rise , people with ingenuity seek to increase output to benefit from the increased prices.
As production and supply increase , supply overshoots demand and prices drop .
Think of some common items like computers and mobile phones .
Compare the prices now to what they cost when they initially became available .
When this occurs the suppliers are in a difficult situation and only the best producers survive.
This process is inevitable and one should be careful not to invest in me-too or copycat producers who are joining in blowing up a bubble that is bound to burst.