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lets assume you live in a small town where nobody sells bananas in other words zero supply now lets also assume that the people who live there would love to eat bananas in other words theres a decent demand for bananas as we can see there is currently an imbalance people want bananas but there are no sellers Peter understands this and starts selling bananas at the beginning his profits will be huge because lots of people want bananas and hes the only one who has them as time passes however sorrow will notice how well Peter is doing and starts selling bananas yourself this increases the supply of bananas and diminishes Peters profit potential the more people start selling bananas the more supply there will be if too many people end up selling bananas but the demand doesnt increase as well there will be too much supply and some of them will go out of business eventually some kind of a balance tends to be docHubed
