Willing buyer and willing seller. These five words form the very basis from which the system of capitalism is based on. You have something you want to sell and if I want to buy it then we either agree or disagree on a price. If we agree then I give you money, take the product, and walk away. And if we disagree then we move on with our days.
In his book, Basic Economics, Samford Professor Thomas Sowell described the role of prices in the economy as “conveying information about an underlying reality while at the same time providing incentives to respond to that reality. Prices, in a sense, can summarize the end results of a complex reality in a simple number.” Prices are determined in a decentralized manner based on the relationship between supply and demand. When a product is in high demand
2024-02-26