Supply=Demand.

Yes, I know I'm writing about stock. You may say'' Alfred why are you writing about boring stuff like stocks?:( "
Well, my teacher told me to and well I have already invested my money in several stocks.
First on the topic, Supply=Demand. Say you have a root beer company and you can't sell the bottles less than .50 cents. First you set the price at $5.00 a bottle, it's too high and nobody buys your rootbeer. Then you set it at $4.50 and you gain a little bit customers. Then you lower the price more and more until you get to $1.50. You have a lot of customers and your stock is good. Then you lower it to one dollar. You lowered it to much. You stocks are starting to deplete but you have more customers than ever.  You raise it up and put the price back to $1.50 and everything is good. $1.50 is your equilibrium. Not too high so you don't have any customers and not to lower so your stocks go down.