Supply and Demand theory
You know some people have a hard time grasping Supply and Demand theory. Its one of those theoretical concepts that most people have a hard time grasping.
The idea is that consumption/pricing is determined by the intersection of the supply and demand curves. The idea is that there is a fixed point that is supplied at a certain level of consumption desired. Anyone whose reservation price doesn’t align with the intersection doesn’t take the deal.
This is a bit complex. So lets simplify with an example.
Its halftime at a football game, you’ve had 2 beers, and there is a fixed number of toilets. Here’s what supply and demand looks like in that occasion:
Yes that is about 50 people in front of me waiting for the bathroom
While this isn’t a supply and demand curve, it does ground the concept in people’s minds. In this case with a fixed supply, and no real substitute its obvious there is an insatiable demand to use this restroom.
