Why does everything have a price?

Why does everything have a price? To begin to understand how the price is determined, try to imagine yourself, in your backyard garden, plant some extra cabbage trees in excess of what you need. What price would you ask for cabbage, cabbage is it? Or say you are skilled in carpentry work, and at a time when leisure, you can create a seat for sale. What price would you ask? Funds if you do not lose time to make it?

Some are fortunate manufacturers may provide products that are so unique that they can put a price as they wish, but remains confident that his product will sell. However, more often than not is "seberapakah the market can absorb" the last of this leads us to examine the market mechanism and the two forces that stand behind it: the demand (fever) and supply (supply)

Demand
First, demand is defined as the quantity of goods that will be purchased at a specified price during a specific time period. Please note that this does not exactly match the needs or desires or passions because this term implies the ability to pay dipermaslahkan object. Basic law of demand is that the lower the price of an item, the greater the desire of people to buy it. Partly this is because they feel it is proper if they buy the commodity in question is more expensive than rivals (substitution effect), and partly because the purchase is to suck their incomes in much smaller amounts (income effect).

Requests can be expressed in a simple graph that shows for example the amount of gasoline in a society will be purchased per month at certain price levels.






The graph above shows that the more gasoline is required then the down curve when the curve moves up shows that there is a price increase.

Yet nature does not change supply costs have not changed their suppliers remain interested as ever to supply a certain amount of gasoline in a certain price. Now that the price rise they will supply more. We can see the new situation. Immediately if we put a new demand curve. Obviously there are things that will occur will increase the price of oranges.

 Instead what happens when demand for gasoline decreases rather than increases, as might happen if a medical journal article that appears to say "gasoline fuel air pollution" that occurs is clearly the opposite. Here's request curve to the left of the curve is long due for a price buyers want a bit more gasoline than ever before. So to anticipate declining demand producer will decrease their supply course offered much less than before.

Thus this post weakness and strength of my opinion please write in the comments field