Space and Gravity: We understand intangible values like price or worth using spatial and physical metaphors: high or low, rising or falling. Although intangible value has no physical properties, we mentally map it onto ideas of space and gravity. For instance, we imagine a lowest point for value, equating a price drop with a sharp fall and a rise with a slow climb, as if gravity is at work. This illustrates that our thinking applies the rules of space and gravity to even the most abstract concepts. - Joseph’s “just my thoughts”
In a market economy , ‘ price ’ is determined by supply and demand . Producers supply and consumers demand, and the compromise between them is price. However, the price determined by supply and demand is not always beneficial to both producers and consumers. The price formed in the market is distorted by various factors, and the imbalance that occurs at these times results in a loss for some and a benefit for others. Wealth transfer occurs when there is an imbalance in the price of a good or service. Price imbalance necessitates an understanding of the essence of the market that forms between supply and demand, and it is a fundamental virtue for entrepreneurs to develop an ability to recognize bubbles and undervaluation of value . - Joseph’s “just my thoughts”