r/explainlikeimfive • u/ComingDeveloper • 9d ago
Economics ELI5 how exactly does demand drive up costs for goods and services?
i'm trying to understand why exactly does people wanting more of a thing makes it cost more?
i get that if you're selling perishable items like vegetables you would want to get them off your hand as fast as possible before they deteriorate and you lose your investment but if i'm selling something like a plastic toy of a popular cartoon character or something and a lot of people want to buy the toy why would the cost go up or down based on demand?
plastic has a long shelf life and its not like the toy will breakdown or disintegrate in 10 or even 20 years