When demand is high and supply is low, it can drive up prices because businesses know they can charge more for something that a lot of people want. This can be a real bummer for our wallets, especially if we're looking to buy something we really need or want. For instance, if there's a new gaming console that everyone wants, the price might be higher than usual because the company knows people are willing to pay more to get their hands on one.
This concept also affects the job market. If there are many qualified people looking for work in a particular field, but not many job openings, it's a case of low demand and high supply. On the other hand, if there's a field where few people have the right skills, but many companies are looking for those skills, then it's the opposite - high demand and low supply, which can lead to better job offers and salaries for those with the right qualifications.
How To Always Be In Demand | Stevan Popovic
A fun way to think about it is like a yard sale. Imagine you're selling a super rare, limited edition toy that collectors are crazy about. Because it's so rare and lots of people want it, you can ask for a higher price. But if you're selling something that's easy to find, like a common household item, you might not get as much money for it because it's not in high demand.
