Initially, the colonists accepted these taxes because they were lightly enforced by the government. These taxes were also light themselves, and were not a harsh payment to make for imports. When the British government did enforce these light duties and eventually added more direct taxes, the colonists feared that by accepting these, they would lose their property and political rights to the British. In the end, the colonists opposed all taxes imposed on them by the government.
Answer:
Explanation:
Example
Let us take this slowly by considering a bicycle. You are given 1 bicycle and you wish to sell it. 4 people are interested and think your price is fair.
so the supply is 1 bicycle
and the demand is 4 people
If those people are want the bicycle equally, what do you think could happen to the price of the bicycle? Shouldn't it go up? Especially if they are all willing to make side deals.
Supply: 1 bicycle
Demand: 4 people
Price goes up.
Now go back.
Suppose you have 10 bicycles and only 8 people are bidding on them. They are not really that interested. So you have to lower the price until someone bites.
Supply: 10 bicycles
Demand: 8 people.
Price goes down. The supply exceeds the demand.
