WEBVTT

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let's assume you live in a small town

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where nobody sells bananas

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in other words zero supply now let's

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also assume that the people who live

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there would love to eat bananas in other

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words there's a decent demand for

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bananas as we can see there is currently

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an imbalance people want bananas but

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there are no sellers Peter understands

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this and starts selling bananas at the

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beginning his profits will be huge

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because lots of people want bananas and

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he's the only one who has them as time

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passes however sorrow will notice how

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well Peter is doing and starts selling

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bananas yourself this increases the

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supply of bananas and diminishes Peters

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profit potential the more people start

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selling bananas the more supply there

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will be if too many people end up

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selling bananas but the demand doesn't

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increase as well there will be too much

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supply and some of them will go out of

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business eventually some kind of a

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balance tends to be reached