Confused about the market pricing mechanism.

[blackwave]

I assumed that price changes in the free market were carried out by the producer when they realised that there was either overconsumption or undercomsumption. But I have read things which imply that it is the price change itself which indicates this change in comsumption to the producer. So is it the stores which change the price? I am confused. :thumbup1:

[Adil3tr]

Ummm... I think the first applies to goods, and the other to material commodities like gold and silver or anything that is traded as is on the market. Also, I think the capitalist just changes his price when he is undercut, if he has to.

[blackwave]

Doh, you caught me. I was completely neglecting raw materials. Now I feel a moron :blushing:. Methinks I need to look more carefull into how the market works.