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  • 2 bales of hay $6
  • $6 last week it was only $3.50?
  • I'm still not following
  • I told you Billy that was before the flood came and damaged the alfalfa crops
  • Because the hay crop got damaged in the county there is now a low supply with a lot of customers 
  • So why do you overcharge me?
  • Because if there is less hay produced the higher the price will be.
  • But I always buy hay from you.
  • Indeed but I do not have enough hay for everyone but the higher the price the more likely it is for people to purchace it somewhere else
  • Plus I have to make enough money to keep producing hay or else I am just wasting my time.
  • Its called Supply and demand. for example if there is a lot of hay the cheaper the price. If there is little hay the more expensive it will be.
  • Okay Mr. Jeffery I understand. Thanks for explaining supply and demand to me!
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