Prices go up when there's a shortage because people are willing to pay more for something they can't get everywhere. Imagine you're at a lemonade stand, and everyone wants the same cup of lemonade, but there aren’t enough cups to go around. The person who is most eager to buy it might be willing to pay extra just to get it first.
Examples
- During a holiday sale, only one toy is left, and all the kids want it, so they pay double the price.
- There’s only one pizza at the party, and everyone wants to eat it. The first person gets it for free, but others have to pay extra.
- Your favorite snack runs out at the store, so you buy it even though it costs more.
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See also
- Why Do Prices Go Up When Everyone Buys the Same Thing?
- Why Do Prices Go Up When There's a Shortage?
- What Is the Difference Between ‘Money’ and ‘Wealth’?
- Why Are Some Things Expensive and Others Cheap?
- What Is the Difference Between ‘Coins’ and ‘Paper Money’?
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