This is Mary, and today, she decided to sell 100% naturally squeezed orange juice.

She already has the blender to make the juice, so all she needs are the oranges. Let's go follow her on her journey!

Hi there, friends!

Mary sets up her orange juice stand, cups, and two huge pitchers of her orange juice. She puts up a sign that reads, "$1.00 for a cup of freshly squeezed orange juice!"

A few minutes later, she suddenly had a crowd of people lining up to buy some juice. In the end, she sold every last drop of her juice!

Surprised at the success of her new business, she decides to make more jugs of orange juice. However, her blender breaks during the juicing process, so now she needs more money to get a new blender.

The next day, she goes out with the jugs of juice she has, and sets up a new sign that says, "$2.50 for a cup of orange juice!"

The people she had seen the day before looks at her new sign and just walks away. She ends her sales day with a jug of orange juice left. She wonders...what went wrong today?

-This is explained by an important principle of economics called the Law of Demand

Why did I end up with less money and more juice left?

The Law of Demand

-If the price of an object, like food, goes up, there will be less of that object demanded/ unwanted; but if the price of an object goes down, there will be more demands for that object.

A Quick Take....................................

Does this graph make sense?

The Takeaway....................................

-Mary sees that, according to the Law of Demand, people were less demanding to buy her $2.50 orange juice the second day because the price was higher than the price in the first day($1.00).

-Mary ends the second day with more money than yesterday because of the new price, but she didn't sell all her orange juice.

A week later, Mary's orange juice stand is booming, as she now concerns the laws of demand into her business.

She now has to keep a daily log of orange prices, as she needs a lot more boxes of oranges to make a lot of juice.

That week, she goes to a popular orange farm to buy more fresh oranges. After logging the prices every time she buy oranges from there, she sees that the prices were slowly growing up.

In order to save money, she started to buy less, as the amount of oranges she usually bought were getting a bit too expensive.