Today was market day -- the last regular market before May's SUPER market! The students have worked hard for 2 months earning their weekly salaries, and many of them have built up quite a savings! Knowing that, I decided to raise my prices. When the students walked in and saw the change, they were taken aback. It was time for them to learn about inflation.
"At the first market, 5 bunny bucks seemed like a lot, but now it doesn't, right? If I kept my prices as low as they've been, you guys would be able to buy out my entire supply! Producers need to adjust their prices to match the amount of money consumers have. Have you ever heard your grandparents say something like, 'When I was your age, a movie ticket only cost a nickel?' That's inflation! Over time, prices slowly continue to go up. When you are my age, things like food, gas, and entertainment will cost more than it does today."
And so the market went. To their surprise, the new prices did not affect their ability to purchase the goods they wanted.
Little people, big minds.