An Idiot's Question

in #finance7 years ago

How Does Buy/Sell Volumes Affect Price Over Time?

bullnbear

Very basic -

  • There is a carrot market, and every carrot is sold for 1$

  • Generally the price is quite stable

  • 240,000$ worth of carrots are traded daily for an hourly volume of 10,000$

  • What if I show up one morning and sell aggressively at market prices 100,000 carrots in 1 hour, or 12 hours?

What would happen to the price of Carrots?