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Supply and Demand 101

Why prices move

One simple idea explains almost everything.

Why prices move

Demand: want drives price up

The basics

More buyers chasing the same thing — prices rise.

Demand: want drives price up

Supply: more of it, lower price

The other side

Flood the market with options — prices fall.

Supply: more of it, lower price

Equilibrium: the market agrees

Where they meet

1 price where buyers and sellers both say yes Supply meets demand

Equilibrium: the market agrees

Now you see it everywhere

Gas prices, concert tickets, housing — same two forces, every time.

Now you see it everywhere
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