The fewer the quantity available, the higher the price for that beanie baby. This can be seen in the graph. If only 400,000 of the Garcia toy was made, its price will be significantly higher than the Bucky toy where millions were made. Economists argue that a monopoly is able to exploit the demand for a product to increase their owns profits at cost to society. As can be seen in the graph, if a firm were to cut production of a good, it can drive the price of the good up.
Contrived scarcity creates inefficiency in an economy because the good is underproduced.
To promote economic efficiency, laws were passed to limit the power of monopolies. Competition is how the market deals with firms who charge a high prices and attempt to earn high profits. As new firms enter a market, chasing high profits, the increase in supply will force the price down. In response to potential profits entrepreneurs have opened new outlets for juice drinks. We can see in the graph that as supply increases, the curve shifting to the right, the price is driven down while quanitity is driven up.