Why Do Expensive Things Sometimes Get Cheaper?

Imagine you buy a shiny new toy for $100. A year later, the same toy costs only $50. Why? Did it break? No! The factories got better at making them.

When something is new, few people know how to make it well. It takes time and effort, so it costs a lot. But as more factories try, they find shortcuts. They make fewer mistakes. They buy materials in huge bags instead of small ones. This makes the toy cheaper to build.

1. Video games: The first game console cost a lot. Now, you can get great games for less because many studios know how to make them.
2. Smartphones: Early phones were pricey. Now, even cheap ones have good cameras because the parts are made everywhere.
3. Solar panels: They used to be super expensive for rich homes. Now, they are normal priced because we learned how to build them faster.