@CTRebbe
“1. Supply and demand makes no sense;If there are less customers than 35 years ago they automatically produce less hats. It should not affect the price.”
Sorry, but you are wrong.
My first degree is in Management Science.
In freshman economics we learn about ‘economy of scale’
The more you produce (manufactured goods) the less it costs to produce.
The hat manufacturer will get better prices on larger quantities of supplies: thread, boxes, ribbons, machine needles, etc. Larger facilities rent for less dollars per square foot, there are volume discounts for shipping, insurance, etc.