Economics of Freedom:
Prices
Concept: Prices
One Line Def:
The real value people place on goods or services depending on the current circumstances of price and demand.
Myths and Misconseptions:
Sellers, especially big sellers, are greedy and can set prices at will to gouge the little guy.
The Reality:
Prices are set by voluntary transactions between buyers and sellers. Neither side gets to dictate the selling price unless force is involved. Often government force. Voluntary transactions benefit both the buyer and the seller or else no transactions would take place. Free markets are the ultimate democratic institution and efforts to manipulate it always result in unwanted and unintentioned consequences.
