There once was a man named Jim. Jim is a hat maker for the town.
Jim had been the town's hat maker since the town first began. Over the years, more and more people moved to the town. Jim had more customers that wanted his hats.
One day, Jim heard there was another hat maker in the town. The other hat maker, Bill, was selling his hats cheaper. He had many different hats. He could make them faster than Jim.
Bill could make hats that the people want.
Because Jim's prices were more than Bill's, Jim's demand went down. This means there were less customers for Jim. Bill's hats were substitutes for Jim's Hats. Jim needed to lower his prices if he was going to get more customers, or sell more hats for less money.
HEY JIM! I got something to show you!
Really? Thank you!
I've finally done it. This machine makes hats at a super fast speed. It's yours.