The concepts of availability and desire are fundamental to understanding how prices are determined in a market. The quantity of a resource, product, or service that sellers are willing to offer is the availability aspect. The desire reflects how much consumers want that resource, product, or service. For instance, if many children want a particular toy, and stores have only a few available, the toy’s price will likely increase. Conversely, if stores have many of the toy, but few children desire it, the price will likely decrease.
Understanding this interaction between availability and desire allows for predictions about market trends. Recognizing how prices change based on these factors empowers children to make informed decisions when spending their money. Historically, even simple bartering systems were based on this concept; individuals traded goods or services based on their availability and the desire for them.
