Prices change because of what people want and how much things cost to make. Imagine you're selling lemonade, and everyone wants it, that means the price goes up. But if no one buys it, the price drops. It's like a game between buyers and sellers.
Examples
- A bakery sells more cookies when everyone wants them for a school event.
- Prices of concert tickets go up when there's a popular band coming to town.
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See also
- Why Do Prices Suddenly Drop — And Then Jump Back Up?
- Why Do Prices Go Up When There's Less of Something?
- Why Do Prices Change When You're Not Looking?
- What are supply decreases?
- How do analysts identify and interpret trends in financial markets?