Exactly. This would result in a partial blackout, if there’s no other provider increasing their production.
In a real world electricity grid, there are always some fluctuations, load balancing, and also redundant generators, that turn on on demand.
You also can’t just turn most types of powerplants on and off easily or quickly.
Demand for electricity also isn’t constant. Some industries will select the time they use the most electricity according to price and supply.
Prime example: water pumped storage. When there’s superfluous electricity it pumps water uphill, if there’s more demand, it generates electricity.
So when the price is very high, the demand will drop, except the inelastic demand. So if this guy pushes up the price and demand falls, he might not make more money overall.
You can easily observe this in the real world as well. If things get too expensive, people change what they buy. Chocolates with Easter design was really expensive this year in Germany, demand fell immensely. The supermarkets are still full with it a huge discounts.
!["Helpful" [Super-Fun-Pak Comix]](https://lemmus.org/pictrs/image/d4835f80-c0e2-4970-b129-bfbe62561af2.webp){kind=link}
Well, at any given moment production and demand must be equal on the energy grid, so maybe this wasn’t the most ideal example.
Exactly, so the price rises to price out quantity demanded until it falls to the supply.
No, the grid goes down and nobody gets service. The laws of economics do not supersede the laws of physics.
Someone about to get a very angry call from a grid operator.
Exactly. This would result in a partial blackout, if there’s no other provider increasing their production.
In a real world electricity grid, there are always some fluctuations, load balancing, and also redundant generators, that turn on on demand.
You also can’t just turn most types of powerplants on and off easily or quickly.
Demand for electricity also isn’t constant. Some industries will select the time they use the most electricity according to price and supply.
Prime example: water pumped storage. When there’s superfluous electricity it pumps water uphill, if there’s more demand, it generates electricity.
So when the price is very high, the demand will drop, except the inelastic demand. So if this guy pushes up the price and demand falls, he might not make more money overall.
You can easily observe this in the real world as well. If things get too expensive, people change what they buy. Chocolates with Easter design was really expensive this year in Germany, demand fell immensely. The supermarkets are still full with it a huge discounts.