What causes prices to go up?

Prices go up when there are more people wanting something and not enough of it to go around.

Imagine you're at a lemonade stand. You have 10 cups of lemonade, and only 5 kids want some. Each kid can easily get a cup, and the price stays low, maybe just one coin per cup. But then, suddenly, 20 more kids show up! Now there are way more people wanting lemonade than there are cups.

Supply is how much of something is available, like your 10 cups of lemonade. Demand is how many people want it, the 5 kids at first, then all 20. When demand goes up and supply stays the same, prices go up too. So now each kid has to pay two coins for a cup because there's not enough to go around.

It's like if your lemonade stand got hit by a rainstorm, and only 2 cups stayed good. Now even fewer cups are available, that's less supply, so prices go up again, even if the same number of kids come by.

So prices go up when people want more of something than there is, like lemonade at a big party!