Why Do People Pay More for Things That Are Rare?

Imagine you have a bag of candies. If there are only two special red candies in the whole bag, most kids would probably want to eat them first, and maybe even trade their regular candies for those few special ones. That’s like how scarcity value works: when something is rare, it becomes more valuable because people really want it.

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Examples

  1. A kid might trade three of his toys to get one super rare toy from a friend.
  2. A farmer wants to buy the best seed, even if it's more expensive than regular ones.
  3. You’ll pay more for a birthday gift that’s really special, like a signed autograph.

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