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In a small town with no banana sellers, there is a high demand for bananas. Peter seizes this opportunity and begins selling bananas, initially enjoying large profits due to the lack of competition. Over time, other sellers notice Peter's success and enter the market, increasing the supply of bananas. As more sellers join, Peter's profits begin to decline. If too many sellers enter without a corresponding increase in demand, the market may become oversaturated, leading to some sellers going out of business. Eventually, the market seeks a balance between supply and demand.
