Prices change because of what people want and how much stuff there is. If everyone wants a toy, but not enough are made, the price goes up, like when you're the only one left in a candy store at lunchtime.
Imagine your favorite ice cream flavor costs $2 today, but if it becomes super popular, maybe it will cost $3 next week because there's not enough to go around. But if people stop liking it as much, the price might come back down, like when you find out a new flavor is even better.
Examples
- If your favorite candy goes out of stock, it costs more next time you buy it.
- A video game becomes super popular, so its price increases for a while until more are made.
- Your lunch gets cheaper if the cafeteria adds two more sandwiches to the menu.
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See also
- Why Do Inflation Rates Go Up When Everyone's Spending More?
- Why Do Prices Change So Much When You're Shopping?
- What is demand?
- Why Are Some People So Good at Haggling?
- What is bundling?
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Categories: Economics · price changes· demand and supply· consumer behavior· economics in daily life