Level 0
Price, market and the record
By the end of this level you can say when a number is a price and when it is not, and explain why prices are written down in order.
In this level
- What is a price?The number the seller writes down is an asking price. The number the buyer says is an offer. Neither of them is a price yet.
- Why do prices change?A price does not move on its own. Every new number is a new handshake. For a number to change, somebody has to have agreed on a different one.
- Writing prices down in orderEvery agreement carries two pieces of information: a number and a time. Write them side by side and you have a record. A record follows the order of time, not the size of the…
- The price of what?So far we have talked about a bicycle, but the thing being recorded can be almost anything: a metal such as gold, a small share of a company, the ratio between two countries'…