Imagine a bakery that sells cookies. When no one is around, the baker sells them for $1 each. But when it's rush hour and everyone wants a cookie, the baker might raise the price to $2, because people are more willing to pay when they're in a hurry. This is like how prices go up when you’re in a rush!
Examples
- You're running late for work and pay $3 for a coffee you'd normally buy for $2.
- The last burger at your favorite fast-food place costs more than usual because it's the only one left.
- Your mom buys a newspaper from the corner stand, even though it’s more expensive than her usual store.
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Categories: Economics · economics,price theory,behavioral economics