[Solved] Making an RPG in Python

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I fixed both your functions. You had your raw_inputs at the wrong place:

def yes_or_no(purchase_q):
    if purchase_q == "yes":
        while True:
            things = raw_input("Great. What is your hearts desire(type no more to exit shop): ")
            if things != "no more":
                buying_something(things)
            else:
                print "Good luck on your journey then"
                break


def buying_something(item):
    if item in shop.keys():
        print "You have %s gold available" %(inventory.get('gold'))
        print "Item Added {0}: ".format(item)
        backpack_items = inventory.get('backpack')
        backpack_items.append(item)
        item_cost = shop.get(item)
        print "Cost of Item is %s gold coins " %(item_cost)
        inventory['gold'] = shop.get(item) - item_cost

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solved Making an RPG in Python