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Why Do Prices Change So Often?

Prices change because people want things, and sometimes they have more or less of them. Imagine you're selling lemonade on a hot day, more kids come to buy it, so you raise the price. On a cool day, fewer kids come, so you lower the price. That’s like supply and demand in real life!

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Examples

  1. When ice cream is in season, it’s cheaper; when it's not, the price goes up.
  2. If your favorite toy is popular at school, you might have to pay more for it at the store.
  3. A pizza shop near a busy street may charge more than one across town because of higher demand.

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Categories: Economics · Prices· Supply and Demand· Market Forces · Text is available under the Creative Commons Attribution-ShareAlike License.