Supply and demand is the fundamental concept of economics that explains how prices are determined in a market economy. The law of supply and demand states that the price of a good or service is determined by the intersection of the quantity supplied and the quantity demanded. When the quantity supplied is greater than the quantity demanded, the price will decrease, and when the quantity supplied is less than the quantity demanded, the price will increase. In my own example, during the holiday season, the demand for certain gifts such as toys, electronics, and clothing increases, while the supply remains the same, therefore prices tend to increase, and you can find some goods out of stock. Another example can be during a pandemic where the demand for masks and hand sanitizers increases while the supply is limited, prices tend to increase.