What causes sudden price changes?

Prices change suddenly because of a quick shift in how much people want something versus how much is available. Think of it like a lemonade stand. If everyone wants lemonade but you only have three cups left, the price goes up. If no one wants it and you have ten cups, the price drops to sell them fast.

Imagine a toy store. When a new video game comes out, demand skyrockets because every kid wants one. If the store only has five copies, they charge more. That is supply running low. When the store gets fifty more copies, the price drops because supply is high.

Sometimes, big news changes prices overnight. Imagine a storm hits the farm that grows strawberries. Fewer strawberries mean higher prices at the grocery store. Or imagine a new law makes it cheaper to make phones. Factories make more phones, so prices fall. It is not random. It is just the balance between what is available and what people are willing to pay.

Prices are like a seesaw: when one side goes up, the other must adjust.