So this principle is not wrong, but it is not comprehensive. In this century, there is a very popular financial field-behavioral finance, which supplements the shortcomings of current western economics from the aspects of human nature and human behavior choice and explains many phenomena that western economics could not explain before.
This rule is based on the premise that all participants in the market are rational people, that is, everyone knows the economy, the law of value, the price fluctuation, and so on! ! ! But in reality, how many ordinary people understand the economy and the unequal information also lead many people not to understand the actual value of an item and its price law, so the price fluctuation law does not conform to what you said!
Therefore, behavioral finance will define his academic premise as the perspective of irrational people to explain these irregular phenomena!
Commodity prices are determined by value and change due to changes in supply and demand, but they cannot deviate too far from value. When exchanging money for goods, how much does a unit of goods need (the proportion index is wrong, which is unique to many goods and dimensionless), or the price is the expression of value (the value itself is expressed in money after deleting money).
Price is the transformation form of exchange value of commodities in circulation. In the economic and commercial process, price is a value figure set for goods, services and assets in the form of money. In microeconomics, price is one of the important variables in the process of resource redistribution between demand and supply.
Extended data
That is, price has the function of regulating economic relations and economic activities. Because the price and value of commodities are often inconsistent, every change in price will lead to the change of interest relationship between the two sides, thus making price an effective means of economic adjustment and economic leverage.
The most typical example is that when many people want to buy gold jewelry, the price of gold jewelry will automatically rise, so that those who can't afford it will give up consumption and adjust limited resources.
That is, price changes can convey market information to people, reflect changes in supply and demand, and guide enterprises to make production and management decisions. The information function of price is formed in the process of commodity exchange and is the result of the joint action of many factors in the market.