Prices change because things people want can cost more when there’s not enough of them. Imagine you’re at a lemonade stand on a hot day, everyone wants lemonade, so the person running the stand might raise the price. But if it gets cold and no one wants lemonade anymore, they’ll lower the price to sell what's left.
Examples
- A candy bar costs $1 at the store, but it goes up to $2 when everyone wants it on a special day.
- A movie ticket is cheaper if only a few people are going to see it, but more expensive during peak times.
- You can buy apples for less in the summer when there’s an abundance of them.
See also
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Use Money Instead of Bartering?
- Why Do We Have Different Kinds of Coins?
- Why Do We Have Different Kinds of Taxes?
- Why Do Inflation and Interest Rates Dance Together?
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Categories: Economics · Supply and Demand· Inflation· Market Forces · Text is available under the Creative Commons Attribution-ShareAlike License.