if its true that when price goes up, supply goes up, then wouldn't companies learn by now to make less if they know people aren't buying as much?
Let's make sure we are using the correct terminology here. When price goes up *quantity supplied* goes up. This happens because now that consumers are demonstrating increased demand, they are willing to pay higher prices at every quantity. Suppliers would want to make more in that case because they can sell their items at a higher price, and increase their production if they can since now methods were previously unprofitable, are now profitable.
That said, you mentioned supply increasing. When supply increases, prices decrease assuming all else remains the same. This could happen because of a new invention that makes production costs fall (a more efficient generator maybe). At first, sure, some companies would be able to keep prices high, but as more companies use this technological advancement, competition among them will require they lower prices. If we looked on the demand curve, we see that since prices are lower, consumers are actually buying more (as the law of demand states).
That said, you mentioned supply increasing. When supply increases, prices decrease assuming all else remains the same. This could happen because of a new invention that makes production costs fall (a more efficient generator maybe). At first, sure, some companies would be able to keep prices high, but as more companies use this technological advancement, competition among them will require they lower prices. If we looked on the demand curve, we see that since prices are lower, consumers are actually buying more (as the law of demand states).