I'm not sure teaching an entire economics class is possible within
this forum but the short answer is, if the gov't stays out of it
prices will quickly adjust to adjust to output levels. In the stock
market supply of available stock changes by the second, as do
commondities, exchange rates, etc, in all these cases prices adjust
such that everyone can buy a share of stock, the only question is the
price. In retail fuel, prices often change more than once per day.

We have also seen how the market can and will manipulate the supply to
raise the cost to the consumer. Hence the need for regulation.