A new restaurant opens in your town, it only has seating for 10 people, and the reviews are great. Many people call and ask for a reservation, but are told there are no seats available. Soon the restaurant expands and can now seat up to 50 people, now everyone is able to be seated and there are even some empty seats on most nights. This illustrates the effect of

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The scenario illustrates the effect of supply and demand. Initially, the demand for seats at the restaurant exceeds the supply (only 10 seats), leading to many people being unable to get a reservation. When the restaurant expands its seating capacity to 50, the supply increases, better meeting the demand and even resulting in some empty seats, showing how changes in supply can affect availability and demand satisfaction.

A New Restaurant Opens in Your Town, It Only Has