2 – M1L3 02 Farmers Market V3

This is Betty. She sells the best fruit. Let’s ask her how she decides what price to sell at. Good morning. Morning. So, if you don’t mind me asking, I was wondering how do you choose the prices for your oranges. Sometimes I see they’re selling at two bucks a pound, some days they’re four bucks a pound, what’s going on? Well, I obviously try to cover my costs and then keeps some profit. That gives me a starting point. Sometimes people will buy it at that price which makes me think I could get a bit more money for them. So, I bump up the price a little bit. If I don’t see anyone buying, I might lower the price later in the day. Does that always work or do people come back and bargain with you as well? Yes, all the time. They’ll often want to pay a lower price and then I tell them what price I can sell at, and we come to a middle ground. Some people are smart. They’ll ask around what prices others are selling it and then pick the lowest price. Eventually, we`re all forced to sell at that lowest price. I see. So, the prices of oranges are set by actual transactions, like the maximum price a buyer is willing to buy at and the minimum price the seller is willing to sell at? You got it,