Dive Deep into the Ocean of Financial Independence.
Intro
(How My Teacher, My Friend, and My Wallet Taught Me This the Hard Way)
When I first learned about demand and supply in school, I thought it was just one of those boring textbook topics you had to cram for exams. Graphs going up and down, "equilibrium point" this, "price elasticity" that — yeah, yeah, whatever.
But once I stepped into the real world — from buying a PlayStation to watching my friend fail at his small business and listening to a teacher tell a hilarious potato story — I realized: Demand and Supply runs the world. Literally.
Let me walk you through how demand and supply actually works, using real-life examples, relatable stories, and some surprising facts you never knew were connected.
What Is Demand and Supply? (The Simple Stuff First)
Before we get into stories, let’s quickly break it down:
- Demand = How much people want a product or service.
- Supply = How much of that product/service is available.
If people want more of something (high demand) and there’s not enough of it (low supply), prices go up.
If nobody wants it (low demand) and there’s too much of it (high supply), prices go down.
Sounds simple, right? But when you see it in action, it’s kind of crazy.
1. The PlayStation 5 Saga – My Personal Eye-Opener
Back in late 2020, I tried to buy a PlayStation 5. It was supposed to cost ₹50,000 in India. But guess what? Online sellers were demanding ₹90,000 to ₹1,10,000!
Why?
Because demand was off the charts (everyone wanted one during lockdown), but supply was super low (Sony had chip shortages).
And I actually paid ₹85,000 for mine after searching for weeks.
That’s when the textbook graph popped into my head. High demand, low supply = sky-high prices.
Lesson learned: Demand and supply isn’t just for economists — it’s what emptied my wallet.
2. My Friend’s Egg Roll Business – A Hard Lesson in Oversupply
Last year, my college friend Rohan started a late-night egg roll stall near the hostel. First week? Huge crowd. He even ran out of eggs one night. Prices were normal, and business was booming.
So what did he do? He thought, “Let me make 3X the rolls and be ready for everyone.”
He also raised prices by ₹20, thinking people would still buy.
But here’s what happened:
- Word spread that the price had gone up.
- Competition increased — another guy started selling tastier egg rolls nearby for cheaper.
- Rohan had too many rolls at the end of the day, many going to waste.
In 2 weeks, sales dropped by 60%.
Why? Because supply exceeded demand. He overestimated customer interest and raised prices at the wrong time.
Now he jokes, “Economics ne mujhe dhoka diya,” but really, it was a classic supply-demand mismatch.
3. What My Teacher Said About Potatoes (I’ll Never Forget)
One day, my economics teacher randomly said in class,
"If it rains too much or too little, the price of potatoes will change — more than the price of iPhones."
We laughed. But she continued:
- If rainfall is poor, farmers can’t grow enough potatoes → low supply, high price.
- If there's bumper harvest → too much supply, but demand stays the same → low prices.
According to data from the Indian government:
In 2019, potato prices jumped by 23% due to unseasonal rains in UP and Bihar.
In 2021, they dropped by 15% because of record harvest.
And the crazy part? Most people don’t change how many potatoes they eat — it’s a daily item. So it really is supply doing the dance.
4. Real Estate Reality – My Uncle’s Apartment Drama
My uncle tried selling his 3BHK apartment in Delhi in 2022.
He quoted ₹1.5 crore. But nobody was buying.
Why? Because:
- Lots of similar flats were available in the same area (over-supply).
- The demand was low because people were moving out post-COVID or switching to smaller units.
Eventually, he had to reduce his price to ₹1.2 crore to get offers.
Meanwhile, a similar flat in Bengaluru sold for ₹1.8 crore, even though it was smaller. Why?
Because demand in tech hubs like Bengaluru was rising, and fewer new properties were being built there.
Exact same supply, totally different demand.
And boom — that’s the difference between a sale and a “no thanks.”
5. COVID and Face Masks – The Global Case Study
You remember the start of the pandemic, right?
- One box of N95 masks used to cost ₹250 in 2019.
- By March 2020? It was ₹1,500 or more (if you even found it!).
That’s global panic demand + almost zero supply (factories were shut).
Eventually, manufacturers stepped up, new companies started making masks, and prices normalized.
Again, supply and demand in action. It literally impacted every country, every shop, and every household.
Interesting Facts You Didn't Know Were Related
- Uber's surge pricing is based on demand-supply: more riders, fewer drivers = higher fare.
- Concert tickets for top artists? Demand is 10x higher than seats available = crazy resale prices.
- Wheat prices globally rise if war or drought hits major exporters like Ukraine or the U.S.
- Diwali discounts? That’s when supply is increased intentionally — stores prep months in advance knowing demand will spike.
So, Why Does All This Matter?
Whether you're a student, a business owner, or just someone buying groceries, understanding how demand and supply works can save you money, help you make better decisions, and maybe even win an argument.
When prices rise or fall, it’s not magic. It’s not just “inflation” or “greedy companies.”
It’s often just... basic economics playing out in real time.
Final Thoughts: The Real-Life Power of a Textbook Concept
I used to think demand and supply was just a boring school chapter. But now I see it everywhere — from vegetables to tech gadgets, fuel prices to Uber rides.
Thanks to a patient teacher, my friend’s egg roll disaster, and my own expensive PlayStation adventure, I’ve come to appreciate it in a whole new way.
So next time you wonder why prices go up, or why something is out of stock, or even why AdSense CPC changes — remember this: It’s demand and supply. It always is.
If you're reading this to understand real economics or want content ideas for your blog or business — trust me, relatable stories beat graphs every time. And that’s exactly what demand wants: real, honest, useful content.
Want more such real-life breakdowns of business and finance? Just let me know — I’ve got tons of stories and real data to share!
