Imagine you have a lemonade stand, and only one person wants to buy your lemonade. You can sell it for whatever you want, right? But if a lot of people come by wanting lemonade, you can charge more because they’re all eager to get it. That’s how companies raise prices when something is in short supply, there are more people who want it than there are things available.
Examples
- A toy store runs out of a popular Christmas gift, so they raise its price.
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See also
- Why Do Prices Go Up When You're the Only One Buying?
- What causes prices to go up?
- What are law of increasing costs?
- What causes price increases?
- What is Market price?