Originally Posted by JKDS
no, its our consumption that limits our production. Lets say you eat 1-2 donuts a day and are the only customer at krispy cream donuts. Lets say that donuts go bad and become hazardous to our health after 5 days. Then, since you only consume 2-1 a day, it would be ridiculous to for krispy cream to produce more than 10 donuts in a single day, since there is no chance of them being eaten and would then become unedible and useless. Therefore, your consumption has just limited krispy cream's production.
Easier example. The playstation 3 came out a while ago, and were mass produced. Consumers however, only bought half of them. Should sony continue making playstation 3's for the fun of it? No, because the consumption of them is too low. consumption of ps3s just limited the production of them. This is simple supply and demand and is true for most things.