2.2. Market Prices

An Essay on Economic Theory by Richard Cantillon

Tags: Monetary Theory, Value and Exchange

12/01/2014 Richard Cantillon

Market prices are determined by the bargaining between suppliers and demanders. Price determination by supply and demand is illustrated with a thought experiment that uses a fixed quantity of a perishable product (i.e., green peas) and known maximum valuations of consumers.

From Part 2: Money and Interest. Narrated by Millian Quinteros.

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