Why Do Prices Go Up When People Buy More?

Prices go up when people want something more. Imagine you're selling cookies, and everyone in town wants to buy them, the more people come to buy cookies, the fewer are left for each person, so you can ask for more money. This is like a game where if too many players join, the prize gets bigger.

Take the quiz →

Examples

A lemonade stand sells out quickly on a hot day, so the price goes up.
Everyone wants to buy the latest phone, but there aren't enough to go around.
The school cafeteria raises prices for pizza because everyone buys it at lunch.

Ask a question

Discussion

Recent activity

Categories: Economics · supply and demand· economics principles· market behavior