Price
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][2]
Money prices
References
- ↑ Ludwig von Mises. "1. The Pricing Process", Human Action, online edition, Chapter XVI. Prices, Mises Institute. Referenced 2009-05-11}.
- ↑ Murray N. Rothbard "4. Terms of Exchange" Chapter 2 - Direct exchange, Man, Economy and State, online edition, referenced 2009-05-05. "The price of a good in terms of another is the amount of the other good divided by the amount of the first good in the exchange."
See also
- The Wikipedia page on price
- The Pricing Process, Human Action
- 1. Money Prices, Man, Economy and State
- Price controls