  We introduce a mathematical model on the dynamics of demand and supply
incorporating collectability and saturation factors. Our analysis shows that
when the fluctuation of the determinants of demand and supply is strong enough,
there is chaos in the demand-supply dynamics. Our numerical simulation shows
that such a chaos is not an attractor (i.e. dynamics is not approaching the
chaos), instead a periodic attractor (of period 3 under the Poincar\'e period
map) exists near the chaos, and co-exists with another periodic attractor (of
period 1 under the Poincar\'e period map) near the market equilibrium. Outside
the basins of attraction of the two periodic attractors, the dynamics
approaches infinity indicating market irrational exuberance or flash crash. The
period 3 attractor represents the product's market cycle of growth and
recession, while period 1 attractor near the market equilibrium represents the
regular fluctuation of the product's market. Thus our model captures more
market phenomena besides Marshall's market equilibrium. When the fluctuation of
the determinants of demand and supply is strong enough, a three leaf danger
zone exists where the basins of attraction of all attractors intertwine and
fractal basin boundaries are formed. Small perturbations in the danger zone can
lead to very different attractors. That is, small perturbations in the danger
zone can cause the market to experience oscillation near market equilibrium,
large growth and recession cycle, and irrational exuberance or flash crash.
