Bargaining
Also called: negotiation · Topic: Markets, Equilibrium and Government Intervention · NCERT: Class 7, Ch 12 "Understanding Markets"
Meaning
Bargaining means a buyer and a seller discuss the price until they agree on one. The seller wants a higher price and the buyer wants a lower one. Each side keeps changing its offer until both are happy. If they never agree, no sale happens. Bargaining is one simple way a market finds a price.
Example
At a haat, a guava seller asks ₹80 per kg, and buyers say this is too high. A buyer offers a price that is too low for the seller to make a profit. Over time they settle on a "just right" price: high enough for the seller and low enough for the buyer.
Don't confuse with
- Market equilibrium: bargaining is one buyer and one seller agreeing on a price. Equilibrium is the price at which the total demand of all buyers equals the total supply of all sellers.