Auction

Auction

Auctions have changed quite a bit over time but the fundamental concept stays the same . The fundamental principles are still there though. Auctions are live events where you bid and compete to buy a wide range of things, such as antiques and property. The auctioneer will open with an opening bid when a commodity is first displayed at the auction. Parties that are interested in the product will bid and compete until no one will top the latest bid. The top bidder will claim their asset after of course paying the amount they promised. The opening bid is set to establish the starting price. The final price, which is the highest price a buyer will pay, is called the "hammer price". When bidding on an item, buyers are usually limited by their budget and not by how much they would like to spend. Auctions work because of a law of supply and demand . This means that the more people that are interested in an item, the higher the price will be. In auctions, there is also a law of supply and demand which means that as buyers compete to get an item, the bids rise and eventually reach a point where no one wanting to buy it will top the current best bid.

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