Changes in how much people want things and how much is available really affect how we choose to buy stuff. Here’s a simple breakdown:
When Demand Increases: Imagine everyone wants the latest iPhone. Because so many people want it, the demand goes up. If there aren’t enough phones to go around, the price will probably go up too. This might make you think twice before buying that expensive phone.
When Supply Increases: Now, think about a popular snack like chips. If a new factory opens up and makes more chips, there will be plenty to go around. When there’s more available, the price usually goes down. This means we might buy more snacks since they are now cheaper!
Elasticity Matters: Some things are "elastic," which means if their prices go up, people will look for alternatives. For example, if gas prices rise, you might decide to carpool with friends or take the bus instead.
In short, these changes make us think differently about what we buy. We consider the price and how much is available, which shows our values and how much money we have to spend.
Changes in how much people want things and how much is available really affect how we choose to buy stuff. Here’s a simple breakdown:
When Demand Increases: Imagine everyone wants the latest iPhone. Because so many people want it, the demand goes up. If there aren’t enough phones to go around, the price will probably go up too. This might make you think twice before buying that expensive phone.
When Supply Increases: Now, think about a popular snack like chips. If a new factory opens up and makes more chips, there will be plenty to go around. When there’s more available, the price usually goes down. This means we might buy more snacks since they are now cheaper!
Elasticity Matters: Some things are "elastic," which means if their prices go up, people will look for alternatives. For example, if gas prices rise, you might decide to carpool with friends or take the bus instead.
In short, these changes make us think differently about what we buy. We consider the price and how much is available, which shows our values and how much money we have to spend.