What happens when supply goes up?

When supply goes up, it means there are more things to buy, and that can make prices go down, just like when you have more candy in a jar.

Imagine you're at a lemonade stand with your friend. You both sell lemonade for the same price. But one day, your friend brings a lot more lemons than usual. Now they can make more cups of lemonade, that’s what it means when supply goes up. Because there's more lemonade to choose from, people might not need to pay as much for yours or your friend's. They could just pick the cheaper one.

Think about a toy store at the end of the year. At first, there are only a few toys left, that’s low supply. But then, the store gets a big shipment of new toys, that’s high supply! Now you have more choices, and maybe the prices go down because the store wants to sell all the toys before the holidays are over.

So when supply goes up, it's like having more options at a fair, and sometimes that means things cost less. When supply goes up, it means there are more things to buy, and that can make prices go down, just like when you have more candy in a jar.

Imagine you're at a lemonade stand with your friend. You both sell lemonade for the same price. But one day, your friend brings a lot more lemons than usual. Now they can make more cups of lemonade, that’s what it means when supply goes up. Because there's more lemonade to choose from, people might not need to pay as much for yours or your friend's. They could just pick the cheaper one.