Imagine you're at a candy store with all your friends. If only one of you wants to buy candy, the shopkeeper can give you as much as you want. But if everyone wants candy, there’s not enough to go around, and that means each person has to pay more for it! This is like supply and demand: when lots of people want something, the price goes up.
Examples
- All your classmates are buying the same phone, so its price goes up before the school year starts.
- Everyone wants to buy tickets for a concert, and suddenly they’re ten times more expensive.
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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · supply and demand,economics basics,price changes