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Price

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Exchanges happen only if each party values what they receive more than what they give away. The price is the exchange ratio between the goods: if Alice trades Bob 4 apples for an orange, the price of an orange is 4 apples. Inversely, the price of an apple is 1/4 oranges. The exchange ratios are now as a rule money prices.[1]

References

  1. ↑ Ludwig von Mises. "1. The Pricing Process", Human Action, online edition, Chapter XVI. Prices, Mises Institute. Referenced 2009-05-11}.

See also

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