Tuesday, September 3, 2013
Today I was learning about the equilibrium price. The equilibrium price is when supply equals demand. Now it is very hard to come upon a product that is at a equilibrium price. Any sort of product can be in equilibrium price from stock to animals like rabbits or cats. Also, stock is how much you would want to pay for a company. Say that you want to buy 10 units of stock from a root beer company then you would see how much money a piece of stock is. So lets say that a unit of stock from the Root Beer company you wanted to buy 10 units from cost 50 dollars a unit of stock. Buy you only have 300 dollars only enough to buy 6 units of stock. So you have a couple of options only buy 6 units of stock from that company. Look into a better company that sells stock for less. Buy a couple units of stock from one company and a couple units of stock from another company or you can not invest your money in stock at all. And there are places where you can buy, sell, or trade stock. This place in America is called Wall Street another place is Otavalo in Ecuador which is also the stock center for Latin America. There is also another key factor for stock and trading this is called price elastic and price inelastic this is how fast a consumer reacts to supply and demand.
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