On Prices
In the ancient world, commercial affairs were complex and prices were different. There are various elements to observe the change of prices.
First, the balance between supply and demand. The demand of the city is prosperous, but the supply is small, the price will rise; if the supply exceeds the demand, the price will definitely drop. In the past, a certain product suddenly became popular with everyone, and there were many people who wanted it, but those who had it could not increase, so its price was high, and merchants competed for it. When the later producers saw the benefits, they rose up and increased the supply. The market was full of goods, and the price gradually fell.
Second, the time and place are right. There are abundant apologies in the year, and the land has different products. In a good year, there are many valleys, and the price is flat; in a bad year, the valley is thin, and And the products of the four sides are different, and they are sold in different places, and their prices are also different. Such as leather goods in the north, which are expensive in the south; fresh fruits in the south, which are expensive in the north.
Third, the guidance of government decrees. What is done above is related to prices. Set the level of taxation, which may help or reduce the business. If the tax is heavy, the business will add it to the price, and the goods will be expensive; if the tax is light, the business cost will be reduced, and the price may be cheap. There are also government decrees to control the market, stabilize prices, and make the people free from hardship.
Fourth, the scheme of merchants. Merchants are good at observing changes in time, and they are clever at scheming. Or stock up on goods and wait for the price to be sold; or associate banks set prices and share their profits. However, this may also be a chaotic market, and the price is not usual.
Changes in prices are related to people's livelihood. If the price is stable, the people will be safe; if the price is chaotic, the people will be disturbed. Therefore, when a wise person governs politics, he must carefully examine the causes of prices and adjust them according to the times, so that the market will be peaceful and the people will be healthy, and business will be smooth and the country will prosper.