When I first moved back to ipele, I used to wonder how market prices were arrived at in rural markets
It didn't seem scientific or according to pure economic theory of supply & demand
It appeared like buyers just fixed prices arbitrarily
Now I know better
Here's what happens
It didn't seem scientific or according to pure economic theory of supply & demand
It appeared like buyers just fixed prices arbitrarily
Now I know better
Here's what happens
Buyers arrive on market day
Sellers individual offer high prices of their goods
If they notice its being bought at that price, the next person raises their own price, and so on
But if no one buys at the high price, they go lower bit by bit
Until they refuse to go any lower
Sellers individual offer high prices of their goods
If they notice its being bought at that price, the next person raises their own price, and so on
But if no one buys at the high price, they go lower bit by bit
Until they refuse to go any lower
Buyers rush the goods on offer when they discover its very limited in quantity,
And they become coy when they notice it is abundant
In the same way, sellers are eager to drop prices when they notice buyers are few, and also do "shakara" when they are many
And they become coy when they notice it is abundant
In the same way, sellers are eager to drop prices when they notice buyers are few, and also do "shakara" when they are many
The above, in a nutshell, is how markets in rural areas arrive at prices for every crop or food item produced for sale.
Hop you've been enlightened!
Hop you've been enlightened!
Hope*
