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Supply and Demand 101

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Why prices move

One simple idea explains almost everything.

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Supply and Demand 101

By Brent Brookler

Why prices move One simple idea explains almost everything. Demand: want drives price up More buyers chasing the same thing — prices rise. Supply: more of...

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Supply and Demand 101

Why prices move

One simple idea explains almost everything.

Demand: want drives price up

More buyers chasing the same thing — prices rise.

Supply: more of it, lower price

Flood the market with options — prices fall.

Equilibrium: the market agrees

1 price where buyers and sellers both say yes Supply meets demand

Now you see it everywhere

Gas prices, concert tickets, housing — same two forces, every time.