First, prices are always relative. We value article say 1 more than we value article 2 and some other person values article 1 less than he values article 2. They will exchange the goods till their total valuations become more than they were before exchange. Prices are the point at which total valuations become equal for both the individuals.
How The Things Are Priced
How The Things Are Priced
How The Things Are Priced
First, prices are always relative. We value article say 1 more than we value article 2 and some other person values article 1 less than he values article 2. They will exchange the goods till their total valuations become more than they were before exchange. Prices are the point at which total valuations become equal for both the individuals.