Demand-pull theory

Imagine you and your friends all want the same toy from the store. The more you all want it, the more the store will charge for it. This is called demand-pull.

Demand-pull theory is the idea that when lots of people want something, the price will go up because the demand is pulling the price higher. It's like if you have only one candy left and everyone wants it, you can ask for a lot of money because people will be willing to pay more because they really want it.

This happens in the economy too. When people want to buy a lot of stuff, like cars, houses, or food, the price will go up because there are more people wanting it than there is supply available. This can cause inflation, or when the prices of things keep going up and up.

So remember, demand-pull is like when you and your friends all want the same toy, and the more of you that want it, the more expensive it will be.