Have you ever gone to the market with ₦5,000, only to discover that the same items you bought last week now cost more? 
Or watched a shopkeeper reduce prices because customers stopped buying?

Welcome to the world of demand and supply, two powerful forces that influence the prices of goods and services.

Imagine a new phone enters the Nigerian market, and everyone wants one. 
If many people are ready to buy it, demand rises. 
When demand increases while supply remains limited, sellers can charge higher prices.

Picture a farmer bringing fresh tomatoes to the market. 
When the harvest is plentiful, there are more tomatoes available for buyers. 
If demand remains steady, prices may fall. 
But when bad weather damages crops and tomatoes become scarce, prices may rise.

Demand and supply interact to influence the market price. 
When demand rises faster than supply, prices tend to increase. 
When supply grows faster than demand, prices tend to decrease.

The point where the quantity buyers want matches the quantity sellers offer is called market equilibrium.

The next time prices change, look beyond the price tag.
Ask yourself: Is the product becoming more popular? 
Has production reduced? Are more sellers entering the market?

Understanding demand and supply helps consumers make better purchasing decisions and helps business owners understand what is happening in their markets.