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Ages 7+ · Money · Money and the world
Why prices change
Nico's price for one apple0123453Calm day5Fair day2Glut daycoins
One apple, three prices. The apple never changed.
The big ideaMany buyers and few apples raise a price. Many apples and few buyers lower it.

How it works

Nico sells apples at a little stall in Plumford. The apple never changes, but the price does.

When many people want an apple and there are only a few, the price goes up. When there are lots of apples and few buyers, the price goes down.

A price is like a seesaw, with apples at one end and buyers at the other. In one season the price was three, then five, then two.

Nobody is being unfair. That is just how prices move.

Apples and buyers01234566Apples, calm day3Buyers, calm day3Apples, fair day6Buyers, fair daycount
On the calm day there were more apples than buyers. At the fair it was the other way round.
Price goes up• Many buyers• Few apples• A fair, a storm or a long linePrice goes down• Few buyers• Lots of apples• A giant crop, or apples at home
What pushes a price.

Example 1: The calm day

  1. Six apples and three buyers: plenty for everyone.
  2. One apple costs 3 coins.
  3. Each of 3 buyers pays 3 coins: 3 + 3 + 3 = 9 coins in the dish.

Example 2: The fair day

  1. A storm leaves 3 good apples, and 6 people want one.
  2. Many buyers and few apples push the price up to 5 coins.
  3. Three buyers pay 5 coins each: 5 + 5 + 5 = 15 coins.
  4. The price rose from 3 to 5, and 5 − 3 = 2 coins.

Example 3: The glut day

  1. Nico has twelve apples and only two buyers.
  2. Lots of apples and few buyers pull the price down.
  3. Nico lowers the sign to 2 coins, which is 3 − 2 = 1 coin lower than the calm day.

Example 4: Up or down?

  1. A fair brings lots of buyers, so the price goes up.
  2. A giant crop of apples makes the price go down.
  3. Everyone has apples at home, so few people buy, and the price goes down.
  4. A long line and only a few apples push the price up.

Words to know

price
How many coins you pay for one thing.
buyers
People who want to pay for something.
glut
Far more apples than anyone wants.
plenty
More than enough for everyone.

Watch out

Try it

  1. Three buyers each pay 5 coins. How many coins land in the dish?
  2. A giant crop of apples comes in. Does the price go up or down?
  3. A storm leaves very few apples and a fair brings many buyers. Up or down?
  4. An apple cost 5 coins on the fair day and 2 coins on the glut day. How many coins more was the fair day?
Answers: 1. 15 coins · 2. Down · 3. Up · 4. 3 coins
Try at homeWith a grown-up at a shop, look at one price and ask why it might go up or down.
For grown-upsAt a shop, look at one price together and ask why it might go up or down. You might talk about things that cost less when there is plenty of them.
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