system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why do prices go down in the holiday season if there is more demand?

Economics 101 would predict that the higher demand in the holiday season would mean higher prices, but the holidays always have lots of sales and prices fall. Why? Is it just because the volume is so much greater that there is a great incentive to beat out the competition?
gpt
Straight forward competition. The demand is also general, that makes a big difference. The demand is mostly for 'gifts' or certain types of gifts, so if company X offers tons of 'gifts' at a lower price than company Y, everyone will go there.

At a certain point of specificity that generality-effect diminishes. If a certain brand that is only sold at a certain store is a "hot item", then the price should really go up. Chances are it's already set at an optimal point so it won't really go up.

Supply and demand can get complicated by various market factors. The way supply and demand is taught in basic business courses or high school is just the basic macro-economic version. Doesn't mean it's not valid, it's just often more complicated than that.