Inflation is like a toy box - if there are only a few toys to share among friends, each toy becomes very valuable. But if suddenly we pour in a lot more toys, each toy doesn't feel as special anymore. This is similar to money. When the government prints more money, each dollar becomes less valuable, and so things seem to get more expensive - this is inflation.

Price controls can be compared to a rule in a game. Say you're playing Monopoly and the bank starts giving away free money, causing prices to rise. If a rule suddenly said that you can't charge more than a certain amount for your properties, it would be unfair, right? As the money keeps being handed out, you'd start losing your hard-earned properties and the game stops making sense. That's what happens with price controls - they mess up the 'game' of economy.

Lastly, think about a lemonade stand. If you just count the money you make (this is like counting raw revenue), it looks like you're doing well. But if you consider how much you spent on lemons and sugar (this is like considering profit margin), you might realize you're not earning much at all. In an inflationary environment, it's crucial to consider profit margins because although revenue might be rising due to higher prices, costs are likely rising too. Thus, measuring profit margin is superior to just looking at raw revenue.

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