The value of money
Get to grips with how changes in prices can shape our shopping
choices.
What happens when some prices go up?
We know that some prices will go up and down because of
changes in demand and supply. This is normal. It simply means that we
might have to make some changes in the way we spend our money from time
to time. If something goes up in price, we might decide to buy less
of it or buy something else instead.
Imagine you have £5 pocket money and you want to buy
a toy that costs £5.You go shopping and see that the price of
the toy you wanted has gone up. This leaves you with three choices:
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What happens if most prices are rising?
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Imagine if you went shopping for the toy you wanted and
found that the price of all toys had gone up. You would probably have
to give up the idea of buying a toy and buy something else instead like
sweets or books. But can you imagine what would happen if the price
of sweets and books went up as well? The money in your pocket would
not buy you as much.
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