Why Do Prices Suddenly Change on Everything?

Imagine you and your friends are playing a game where you all have to buy candy from the same store. One day, the store gets more candy, so it’s cheaper for everyone. But if the store runs out of candy, it becomes more expensive for everyone. That's like what happens when prices suddenly change on everything, sometimes because there is more of something, and sometimes because there is less.

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Examples

A big storm destroys most of the crops around town, so suddenly all the vegetables at the store cost more.
Everyone gets a raise at work, so stores have to increase their prices for everything because they pay more to buy things from other companies.
A new invention makes it much easier and cheaper to make phones, so suddenly phones get cheaper everywhere.

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Categories: Economics · inflation· prices· economics· consumer behavior· supply and demand