Imagine you and your friends all want the last chocolate bar in the store. Since there's only one left, you'll probably pay more to get it, that’s demand and supply! When a lot of people want something but not enough is available, prices go up because everyone is willing to pay more to get what they want.
Examples
- You and your friends all want the last chocolate bar, so you pay more for it.
- A new toy becomes popular quickly, and the store raises its price because they can't make enough.
- There are only 10 tickets left to a concert, but hundreds of people want them, prices go up.
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See also
- Introduction: What is Price Theory?
- Why Are Some Things Always In Short Supply?
- Why Are Some Things Always More Expensive?
- Why Do Prices Go Up When There's Less of Something?
- What happens when supply goes up?