Excellent shopping advice. In a perfect world, supply and demand equals a net zero sum. There are enough widgets available for everyone who wants a widget. The price of a widget remains constant. But, as we all know, there is no such thing as a perfect world. All sorts of external forces influence the market – many of which are detrimental and artificial – think government interference with their excessive taxes, tariffs, quotas, and regulations. Then there are natural forces- two severe hurricanes wipe out the Central America banana crop. A real life example close to home – the severe wild fires in Napa and Sonoma Counties will directly impact wine production. Very few wineries burned, but the vines of the other wineries absorbed the smoke, which will give the grapes a musky taste. This will negatively impacts the region’s wine production for this year and next, as who wants to buy a “smoky” wine. But other wine making regions, such as the Central Coast and the Santa Cruz mountains, will benefit from increased sales., The entertaining supply and demand real life examples in this post explain the concept of supply and demand while showing you how to use them in your life!, In an efficient market, price and quantity occurs at the point where the supply curve meets the demand curve. This point is known as the equilibrium between supply and demand. Equilibrium prices and quantities can be used to model a broad range of markets and economic activities. The following are illustrative examples of supply and demand..