What are supply and demand, and why do they make prices change?
Price Tag Tug-of-War
What are supply and demand, and why do they make prices change?
Imagine a price tag is just a tiny number on a string. It looks still and innocent. But it's secretly being yanked from both ends — by two invisible forces in a quiet tug-of-war that never, ever stops. Those two forces are called supply and demand, and once you see them pulling, you'll see them everywhere.
Let's meet the first force: demand. Demand is just "how many people want a thing right now, and how badly." If a lemonade stand is the only cool drink on a blazing hot street, suddenly everyone wants it. That hot wanting — all those thirsty people leaning in — is demand pulling on the price.
