Supply and Demand
It's all about supply and demand
The cycle of ups and downs depends mainly on two things:
Supply and demand are called market forces because they act to make the market function.
Supply and Demand out of Balance
High Demand but Low Supply
On the other hand, too much supply with low demand can also hurt.
Scarcity and Opportunity Cost
If there were unlimited resources, everyone could have everything they want and need, and there would be no need to make choices. But because of scarcity, producers and consumers must make choices that are sometimes very difficult.