Prices

Prices

Prices change over time and can have great effects how much someone buys of a product. Prices change over time because of inflation (rate of increase in prices). For instance, a book may have cost only one dollar 20 years ago but today would cost 6 dollars. Also price changes affect the purchasing power of money. So, another way of looking at the book example is that today you could only buy 1/6 of the book for a dollar. [JP] {EC}