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Pent-up Demand

Imagine you're in a grocery store during a pandemic, and you're on a mission to find a bottle of hand sanitizer. But when you get to the aisle, all the sanitizer bottles are gone! You start to panic - how will you stay clean and germ-free?

That's what we call "Pent Up Demand". There is a high demand for sanitizer bottles, but there is a shortage of supply. People are buying up all the bottles as soon as they become available, leaving none for others who also need them.


But let's say you eventually find a bottle of sanitizer. You might be tempted to buy more than one, just in case there's another shortage in the future. That's also Pent Up Demand - people are stocking up on products to make sure they have enough in case of future shortages.

Now, let's imagine the sanitizer bottles are properties. Just like the sanitizer bottles, there can be Pent Up Demand for properties. People might be rushing to buy up all the available properties in a certain area, leaving none for others who are also looking to buy. And, just like buying extra sanitizer bottles, people might be buying extra properties as an investment, creating a shortage of supply and driving up prices.


So, the next time you see a shortage of sanitizer bottles or any grocery item, remember the concept of Pent Up Demand. It's a funny way to explain why people can act so crazy over something as simple as a bottle of hand sanitizer!


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