But, if there's little demand for his talents, Junior will be left without any real options. Next, let's look at one of the best illustrations of supply and demand at work - auctions. Whether it's an old fashioned estate auction or one on the internet the same forces are at work. We all know the basic auction game. You put something up for sale and it goes to the highest bidder.
Internet auctions are popular with sellers because they attract more buyers.
Last year's run up in gasoline prices is another learning experience. Crude oil prices had gradually decreased for years. OPEC controls much of the world's oil supplies. They decided to cut production. That set up a situation where demand for oil stayed the same but the supply decreased.