Supply vs Demand

The law of supply and demand is like a balancing act that determines how prices are set in the market. It’s pretty simple: supply is how much of a product or service is available, and demand is how much people want it.

Here’s how it works: when there’s a lot of something available, like a ton of new Adidas slides, but not many people want to buy them, the price usually drops because Adidas need to make it appealing. On the other hand, if a product is super popular and everyone wants it but there’s not much of it available, like a limited-edition Travis Scott Air Jordan sneaker, the price goes up because people are willing to pay more to get it.

So, the law of supply and demand says that prices go up when demand exceeds supply and drop when supply exceeds demand. It’s all about finding that sweet spot where the amount of stuff available matches what people are willing to buy, keeping the market in balance.