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In a small town with no banana sellers, there is a high demand for bananas. Peter capitalizes on this opportunity by selling bananas, initially earning significant profits as the sole supplier. However, as Peter's success becomes evident, others begin to enter the market, increasing the supply of bananas. This influx of competition reduces Peter's profit potential. If too many sellers enter the market without a corresponding increase in demand, excess supply may lead to some businesses failing. Ultimately, this scenario illustrates the dynamics of supply and demand, where an imbalance eventually seeks a balance in the marketplace.
