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
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