Why Are Some Things Incredibly Expensive and Others Almost Free?

Some things are expensive because people really want them. Imagine you have a toy that only one person in the whole class wants, they might pay a lot for it. But if there are 100 pencils and everyone needs one, each pencil can stay cheap because there's more than enough to go around.

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Examples

A candy bar costs more than a bag of chips because people like it better.
There are only five limited edition toys, but fifty kids want one.
You can buy enough pencils for an entire classroom for less than a single smartphone.

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Categories: Economics · economics· cost· value· pricing