Why Do Prices Rise?
You’ve probably heard your parents complain about the price of gas going up, or how expensive milk is becoming, or about rent and tuition fees and all those other grown-up things. Economics also explains why prices go up, and most importantly, it explains how they go up. Review: Supply and Demand Since the supply and demand graphs are part of every basic economics concept, let us go back to them and review how they change prices. Remember: the higher the supply, the lower the price. The higher the demand, the higher the price. Both the suppliers and the demanders need...
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