Create account Log in

Why Are Some Things So Much More Expensive Than Others?

Imagine you have two toys: one is a simple ball, the other is a robot that can move and talk. The robot costs more because it does more things, like being able to dance or tell stories, even though both are just toys. That’s how economic value works, people pay more for things that do more useful things or make life easier.

Take the quiz →

Examples

  1. A chocolate bar costs $2 because you only eat it once in a while. A toy car that moves on its own might cost $10, but you play with it every day.
  2. You pay more for a movie ticket at the theater than you would if you watched it at home on your phone, just because you want to be there with friends.
  3. A backpack can be $20 or $50 depending on what logo is on it. The logo doesn’t make the backpack better, but people think it looks cooler.

Ask a question

See also

Discussion

Recent activity

Categories: Economics · value· price· economics· cost· comparisons