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
- Why Are Some Things So Much More Expensive Than Others?
- Why Are Some Things Incredibly Expensive — And Others Practically Free?
- Why Do Companies Raise Prices When Demand Increases?
- Why Are Some Things Incredibly Expensive — And Others Cheap?
- How Does Gold Stay Valuable Over Time?