Wishing you all a good day,

Today we will be doing something better, we won't have our regular behavioural improvement topics, we will going to more topics related to accounting, but this doesn't mean our behavioural topics are over, we will continue as soon as I have a content for that. Today's content is on one of the principles of economics, which is;

"Price rises if government prints too much money"

Alot of you already know this, but have you reason how it works, and how we can improve the system better, Everything in economics happens to fall back to demand and supply, if anyone can really understand this very much, you can be called an economist already. Demand and supply is what kinda rule this world, it what's set the trends in the forex market, and also in fashion, in short in any area you can think of in life. So you might be thinking how this relates to the fact that price will rise, you do know the lesser the substance the value it gets, and the more the substance the lower the value,

Source

Why is that you may ask ?

Because human being always want something that others don't really have, for example at one point in time, where button phones came into the country, they were bought at a very high price but the moment android phone came, most of the button phones price reduced drastically, same for the iphone series, once a new series come out the other ones reduce in price, it's quite simple to understand and that is that, demand for the other products reduce, so they have to reduce the price do customers can get there eyes of the hot cake of the season and come to them, but that usually doesn't happen because this operated using the abnormal law of economics or will I say price, which states that the higher the price the more demand you get eg iphone.

So how does price increases because money is printed much ?

It's rather simple to answer, due to the explained above, you can see that, the more the substance the lesser the value because in the charts the supply will become smaller and then the value of the supply [goods] becomes very high so the money loses its value because everyone have much of it which means the battle for supplies will be on and too much people can afford the old price so they have to increase the price to another level so the quantity can reach certain people.

So what's causing the high price of goods in Nigeria ?

From my own understanding, it can be many things like the excessive importation, the yahoo that started or maybe the poor analysis we have followed, but I do know one thing for sure is if we can some how increase production that our economy will grow and price will come than because in the charts demand and supply won't be very far away from each other.

Thanks for reading my post, love you all
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