The Tug of War of Demand & Supply

byTulika Prashant

As summer approaches, we all eagerly wait for mangoes. But have you noticed that at the beginning of the season, mangoes are usually quite expensive? And, a few weeks later, fruit shops suddenly seem full of mangoes and the prices fall. Why does this happen? The answer lies in two important ideas—demand and supply. Demand and supply affect the prices of many things around us, from vegetables and clothes to movie tickets and hotel rooms.

What Is Demand? Demand means how many people want to buy a thing at a given price.For example, during the summer, more people want ice cream. Or, after winter ends, fewer people want to buy jackets. When a new phone launches, many people want to buy it. But once the model becomes old, fewer people w