Monkey Business
Once upon a time in a village in India, a man announced to the villagers that he would buy monkeys for Rs.10.
The villagers, seeing there were many monkeys around, went out to the forest and started catching them. The man bought thousands at Rs.10, but, as the supply started to diminish, the villagers stopped their efforts.
So the man announced that he would now buy at Rs 20. This renewed the efforts of the villagers and they started catching monkeys again.
Soon the supply diminished even further and people started going back to their farms. The offer rate increased to Rs 25, and the supply of monkeys dropped so much that it was an effort to even see a monkey, let alone catch one!
The man now announced he would buy monkeys at Rs 50 ! However, since he had to go to the city on some business, his assistant would now act as buyer, on his behalf.
In the man's absence, his assistant told the villagers 'Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when he returns from the city, you can sell them back to him for Rs 50.'
The villagers squeezed together their savings and bought all the monkeys.
Then they never saw the man or his assistant again, only monkeys everywhere
Then they never saw the man or his assistant again, only monkeys everywhere