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Price - Simple English Wikipedia

Price

From Wikipedia, a free encyclopedia written in simple English for easy reading.

A price is a value people think something is worth. This is usually measured as money.

Let's say Peter raises sheep. Sally raises ducks. Winter is coming, and Sally wants some sheepskin coat to make her feel warm. She could now first calulate how much sheepskin she would need for a coat. Lets say she needs 2 sheeps coats for that coat. She would then go to Peter and ask him, how much he wants for the two sheep skins she needs. Peter would then likely tell a price. Alternatively Sally could trade some of her ducks for the sheepskins.

Since trading ducks for sheep is rather complicated, people introduced something they called money. This is simply used for trading. So sally would trade some of her ducks for money. Some of this money she could then give to Peter to get the sheepskin.

This short article can be made longer. You can help Wikipedia by adding to it.

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