Imagine you're selling apples at a market. If everyone wants to buy your apples, you can charge more because there’s lots of people wanting them, that's price differences in action! On the other hand, if no one wants your apples, you might have to lower your price to get anyone to buy them.
Examples
- A limited edition toy sells out fast at a high price
- More people want concert tickets than are available
- A hot dog vendor raises prices on busy days
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See also
- What Makes a ‘Currency’ Hold Its Value Over Time?
- Why Do Prices Go Up When You're the Only One Buying?
- Why Are Paintings So Expensive?
- How Did Money Start and Why Do We Still Use It?
- What is Cost-push inflation?