A clear example of supply and demand

Hello Project Hope friends, best wishes to all. There is something that is the most basic thing we should know about supply and Demand in the markets, to tell the truth, in any market.

It has to do with the existence of a particular product as well as the demand or need for it. This is basically what determines the price of something. Basically if there is a lot, the price tends to go down, on the contrary, if there is little, it tends to go up.

The reverse phenomenon also occurs, which has to do with demand or need. That is, if there is a lot but the need for it is high, it will also cause the price to rise; if, on the contrary, there is little, but no one wants it, the price will go down.

I explain this previously because there is something that I have been seeing in Colombia in relation to eggs, which have been on the decline since the beginning of January.

Last year the largest eggs were worth up to 20,000 Colombian Pesos (COP) per bucket, which is equivalent to about 5 dollars, it was normal to see them around that price, however, now I have been able to find them for up to 15,000 COP.

A price decrease of up to um 25%, but what is that due to?.

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This price drop is related to the exaggerated supply. It turns out that, as is normal in the month of December, the food varies. They eat more seasonal food, which although eggs are used in some dishes is not what prevails.

So, in December fewer eggs are consumed, which causes them to accumulate in warehouses, increasing supply, which produces this decrease in prices.

I hope that with this example it is quite clear what supply and demand are and how this can cause the price of a product to move.

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