Do you like blowing bubbles with your chewing gum? Of course – who doesn’t? Even adults do it. Only they blow bubbles out of money that can reach huge proportions and burst with terrible force. Economic bubbles occur when a commodity is sold in a free market at a greatly inflated price — that is, for more money than it actually costs. But the price of the goods in the market, as a rule, is determined by the demand (the desire to buy the product) and the supply (the possibility of selling it). If one seller wants to raise the price of their goods, then buyers will run off to buy this product from other sellers. This is called free competition, which levels out prices, making them relatively fair. So then how can prices become inflated in a free market with competition? Learn more in OYLA Youth Science magazine! www.oyla-science.com #oyla #auckland #newzealand #sciencemag #sciencemagazine #KidsSience #OylaScience #OylaYouthScience #school #newzealandschool #aucklandschool #education #australia #economics #bubbles #money #Exchange #price #inflated #business #market #goods #diagram #default #funds #investment (at Auckland Region)












