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4
So… the supply would run out?
So, imagine this wrap was even cheaper. One dollar. And they’re pretty tasty, right? Can you imagine how many people would come to this cafe for a cheap, tasty lunch?
Exactly. You can imagine that with so many customers— with high demand, there wouldn’t be enough ingredients to cook the chicken wraps anymore.
Yeah, the line to enter would be insane.
5
Yes! With a large number of customers, the ingredients would quickly run out. Using business terms, high demand will cause low supply. Businesses can run out of supply when there is a high demand for their product.
Okay, but what if it’s the opposite?
Yeah, how can that happen?
Low demand, high supply?
6
See? When the price of a product is high, you, the consumer, don’t have a demand for these expensive chicken wraps. When there are fewer people buying their product, the cafe doesn’t sell as much of their product.
Um.. probably not. I’d go somewhere else for a cheaper meal.
Well, now imagine this. This chicken wrap is 15 dollars. Would you buy that?

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