What happens to demand when products are scarce?
One reason for the price hikes Americans are seeing is product shortages. Some things are scarce  electronics and appliances, furniture, for instance. Last year, Kristen Nelsons gas stove broke, so she ordered a new one  this time, with an induction cooktop. Its the one that uses magnets, she said. She was trying to be environmentally conscious. She bought it in September. And I was told it would come in November, and I was like, Ah, I guess I can do two months. Itll be OK,' Nelson said. And every month, I got a message that said it was coming later and later.  She ate a lot of salad and microwaved eggs. The stove arrived in March. If shed known it was going to take that long, she wouldve looked at other options. When retailers dont have the product you want, you have a choice to make: wait, change your plans or buy something else. Marc Iampieri, managing director at the consulting firm AlixPartners, said retailers are thinking about that buy something else part as they buy inventory. Or a hoverboard?  You can, you know, supplement your assortment with products like that that maybe arent the first choice, he said. Iampieri said customers are often willing to consider different brands and styles if its a time-sensitive purchase, like if the fridge breaks. Or even if they want patio furniture, and its June, so clocks ticking. In some cases, they have to be willing to switch between style, or theyre going to miss the season, Iampieri said. The other element here is price. Even if people find what they want, the fact that theres a shortage will likely make it more expensive. And that can push them to buy something cheaper or not buy at all.