How could you have prices that kind of move?

And this is very relevant to what's going on in the world today.

So we know that housing prices went up.

If you ever think about it, pricing that you negotiate yeah, we kind of have this price on paper, but that's just the starting point of the conversation.

Because you're getting the same earnings for a lower price.

I said the price doesn't tell you much.

Monsanto makes a ton of money, and the small farmer gets squashed.

And just so that we get some of the other details that we see here, this bid right here, this is what someone has explicitly said that they are willing to pay for a share.

It is traded.

It's the best price that someone's willing to give you for something.

And so, we're in a wonderful situation with electricity in the rich world.

Well in this case I paid 100 for the bank account.

You know what happens at that point?

Our price is considerably higher than the current market price.

We're not selling the car.

And we see that the last trade here was for 2.58.

When economists refer to inflation today, they are referring to a general increase in the level of prices of goods and services.

So technically I guess prices can be rounded off to the nearest cent.

I could actually price on specific customer segments or on features I know they need.

Does the price include breakfast?

No, what happened to us, Chris, is that power, it's priced off the margin.

Because 1 minus 0.25 is 0.75.

And that caused housing prices to go up.

Can you give me a better price?

We've been talking about the law of demand and how if we hold all else equal, a change in price, price goes up, the quantity demanded goes down and the price goes down, the quantity demanded goes up.

So if the sale is twenty five percent off of x, we could say that the new price, the sale price will be x minus twenty five percent of x is equal to the sale price.

It's not about low cost.

Trust me when I tell you that.

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

Or, God forbid, if housing prices actually go down.

So I'll pay 2 per share, which is a little bit of premium over the market value at the time, which was 1.

Whenever you hear things like book value, and I've done a couple of videos on book value versus market value, but the book value is essentially what you have on your accounting books.

I'm going to use for the customer segment.

Let's say I do come out the gate at, I don't know, 1.75.

What is the price?

I'm going to correct that before you actually play with the model.

1x minus 0.25x.

It has been made possible, by the way, for certain other different reasons.

There is no free market for oil.

On the other hand, if you bid down here, and if c snuck in in between what your bid is and what the valuation is, then you've lost the auction, and you get a zero, but you should have won or it would have been worth your while to win because the price still would have been a bargain to you.

You're making 10 , and that's just to connect the dots.

And frankly, if there was a bunch of lemonade stands, everyone is trying to sell their capacity.

So 5 million divided by 1 million is 5.

After 50 years of improvements, the same washing machine costs 3,195 CHF.

We have made an effort to quote our most competitive price.