fd1nfo on Nostr: Prices are set at the margin, where the quantity demanded by buyers and the quantity ...
Prices are set at the margin, where the quantity demanded by buyers and the quantity supplied by sellers meet.
At this equilibrium, the price is not necessarily what buyers ideally want to pay or what sellers ideally want to receive, but it reflects the balance between supply and demand at that moment. It’s the price where the last willing buyer and the last willing seller agree to a transaction, which sets the "market-clearing" price.
At this equilibrium, the price is not necessarily what buyers ideally want to pay or what sellers ideally want to receive, but it reflects the balance between supply and demand at that moment. It’s the price where the last willing buyer and the last willing seller agree to a transaction, which sets the "market-clearing" price.