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Markets and prices

Supply and demand

Buyers want more when something is cheaper, sellers offer more when it is dearer. Where supply and demand cross, the market price appears.

2nd grade (secondary)Ages 14 to 16Draft: Not yet reviewed by an economics teacher.

Why

Why does a punnet of strawberries cost much less in June than in March? And why are tickets for a popular concert sometimes gone in a few minutes?

Nobody sets those prices in a law. They come about on the market, between people who want to buy and people who want to sell.

If you understand how supply and demand make a price together, you understand why prices go up and down. Then you can also judge better when you can buy something cheaply.

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