The Free Market Center
The Free Market Center
Grower buys from dealer | Grower sells to dealer |
---|---|
Quantity: 500 Bushels | Quantity: 800 Bushels |
Price: $2.00/Bushel | Price: $1.88/Bushel |
The first three columns show that the corn grower bought 500 bushels of corn for two dollars a bushel, and of course the dealer bought 0 bushels.
In the second three columns, grower does not buy any corn (the first column amounts to 0 bushels); for the price of $1.88 per bushel the grower sells 800 bushels to the dealer. (The price of $1.88 per bushel does not indicate any mathematical precision. It simply indicates that, with a greater quantity on the market, the per bushel price will probably fall.)
Next, let's look at a comparison of the two different outcomes within the two different banking systems.