You remember Fred Flintstone, a rather rough and outdoors kind of guy, and his more domestic next-door neighbor, Barney? Fred sees himself as a macho he-man who likes to hunt dinosaurs. One day he goes out and kills a big somethings-a-saurus even though this freezer is already full of dinosaur hurgers. Barney does not enjoy hunting and killing but he likes eating dinosaur Whoppers. Barney prefers to sit around his backyard whittling wood and making clubs. Fred rarely takes time to make his own clubs.
Fred wanders over to Barney's backyard and gets an idea. Why not swap Barney a couple of platters of dinosaur burgers for that new club he is finishing. So he puts this proposition to Barney: "Barney, I'll give you two platters of dinosaur Whoppers for that new club. How about it?" Barney says, "OK, you got a deal."
Fred and Barney have just created a market. It is just that simple! Both Fred and Barney valued what they wanted more than what they had. To Barney the burgers were more important (valuable) than the club he was making, and to Fred the club was more valuable than the burgers.
All Markets are Created When Two or More People Have an Equal Disagreement on Value and an Agreement on Price.
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