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If the demand decreases, market price would go down. IN DETAIL: Demand is a rightward sloping downwards curve. Supply is a rightwards ascending curve. If you plot a graph of both, where the horizontal axis shows the quantity demanded by the market, and vertical axis shows the market price, the intersection of the demand and supply curve would give you the market price. A decrease in demand would mean a leftward shift in the demand curve, causing the intersection point of of the two curves to be lower than the previous one, which means at a point that shows a lower price. So the market price would decrease.
Because if it set its price higher than the current market price, it would not sell anything; and if it set its price lower than the current price, it would sell all of its product, but it would not make an economic profit. Understand, however, that this does not happen in real life, because in real life, there is no such thing as a perfectly competitive market.
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
market conditions are responsible for price setting, as thing in perfect market are homogeneous, any different product with special feature would have a high price for it .
Would it not be a Monopolistic with imperfect market structure
If the demand decreases, market price would go down. IN DETAIL: Demand is a rightward sloping downwards curve. Supply is a rightwards ascending curve. If you plot a graph of both, where the horizontal axis shows the quantity demanded by the market, and vertical axis shows the market price, the intersection of the demand and supply curve would give you the market price. A decrease in demand would mean a leftward shift in the demand curve, causing the intersection point of of the two curves to be lower than the previous one, which means at a point that shows a lower price. So the market price would decrease.
Pricing strategies of traditional food is determined by the traditional food market. They will set a price based off the demand. Usually in a normal graph you would choose the equilibrium price of traditional food.
Gay
Line chart
Because if it set its price higher than the current market price, it would not sell anything; and if it set its price lower than the current price, it would sell all of its product, but it would not make an economic profit. Understand, however, that this does not happen in real life, because in real life, there is no such thing as a perfectly competitive market.
1550
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
market conditions are responsible for price setting, as thing in perfect market are homogeneous, any different product with special feature would have a high price for it .
Explain why a niche company might have an advantage in a market would price necessarily be an advantage explain why or why not
In an ever changing market, it would be difficult at best to forecast a price for fast food items. Suggest you telephone the local outlet for this price as the prices may change according to region.hehehe
Cost price (Purchase price) or market price whichever is less that would be taken as Closing Stock
Cost price (Purchase price) or market price whichever is less that would be taken as Closing Stock