Free Market Is A Price For The Price Of Her Car Essay

810 Words Nov 10th, 2015 4 Pages
Free market is often a term used to describe buyers and sellers in a market who can buy and sells goods at any given price. Rational buyers are part of the market and are said to buy the product if he or she thinks its worth it. This is said to lead to optimal satisfaction. A free market system maximizes the overall good of society. In a free market any good can be sold at any time, its just whether the customer will buy it In the story of Alexa, Michael and Mathew, Alexa gets to set the price of her car. Michael and Matt being the buyers of the market, they get to choose whether to buy her car or not. This illustrates the fact of an open market. There is a seller who sets a price and two buyers, which makes this a free market. Michael thinks Alexas car is worth $2000. Matt, however does not believe her car is worth $2000. Alexa believes that $2000 is a fair price for her car. The buyers and sellers with only buy or sell the car if they feel it’s the right price. This allows sellers to hold onto products until they get the right price. What the buyer wants the seller might not want so this advantage goes to the seller. At this point everyone in the market is satisfied. Mathew might be temporarily upset because he did not get the car. Mathew will most likely find another car for cheaper. This situation cannot be better because it is impossible to make one better off then to make one worse off. Another argument could be capitalism. Under the capitalism citizens make, buy…

Related Documents