> If everybody is panicking, then the goods go to the panicking people who have the most disposable income.

Higher prices often discourage people from over-buying an item.

For example, at the beginning of the pandemic, people sensed toilet paper might soon become hard to find. Its not perishable, so when they found it at a normal price, they stocked up. Why not? They know they'll use it eventually and they don't want to be hunting for it a month later. You don't need to be a super wealthy person to pre-purchase a years worth of TP.

But, if TP had been selling for double the normal price, they would have bought less. There's no need to pay pandemic prices for TP that you'll be using next year.