Imagine you're at the store, and everyone is running out to buy bread because they think there will be no more. When a lot of people want something at once, the price goes up, just like when you all want the last cookie in the jar.
Examples
- Everyone buys bread because they think the store will run out.
- A toy becomes super expensive right before Christmas because all the kids want it.
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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?