Imagine you're selling lemonade. If a lot of people want to buy it, you might raise the price because you know they'll still buy it, like when you're at a fair and someone asks for a hot dog right before the game starts.
If not many people want your lemonade, you might lower the price so more people will buy it. That’s how price changes work in real life: sometimes things get more expensive, and sometimes they get cheaper depending on what everyone wants.
Examples
- You want to buy the last candy bar at the store, but it's more expensive than usual.
- Your favorite drink is cheaper this week because the shop has too many of them left.
- A toy that was super popular on TV costs twice as much now.
Ask a question
See also
- Why Do Prices Go Up When You're the Only One Buying?
- Why Do Inflation Rates Go Up When Everyone Is Spending Less?
- Who is Consumer Behavior?
- What is demand?
- Why Do Inflation Rates Surprise Everyone?