0
How do market-clearing prices act as signals to buyers and sellers?
Wiki User
∙ 11y ago
Most economists see the assumption of continuous market clearing as not very realistic. However, many see the assumption of flexible prices as useful in long-run analysis, since prices are not stuck forever
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
How do buyers and sellers determine prices?
Buyers don't determine prices directly unless at a lcoal market/yard sale. Sellers determine the price of an object by factors such as supply, demand, and maximum profit.
What is the struggle between buyers and sellers to get the best products at the lowest prices?
That Would Be COMPETITION
What is the role of buyers and sellers in determining market clearing prices?
The sellers will determine how much they want the product to cost to make it worth producing. Buyers will determine how much they will spend on the product.
How are prices determined in a market economy?
it is being determined that, in a market economy, if buyers and sellers meet it will do effect in prices. for example: if the number of buyers increases the price also increases. so sellers will produce more goods and services. in the same manner, if the number of buyers will declined the price will go down so sellers now will produce in constant.
What is supply and demand and how does it affect property prices?
Many buyers plus few houses available for sale means higher house prices - (a sellers market). Few buyers plus a surplus of houses for sale means lower house prices - (a buyers market).
How do buyers and sellers determine prices?
Buyers don't determine prices directly unless at a lcoal market/yard sale. Sellers determine the price of an object by factors such as supply, demand, and maximum profit.
What happens during a reverse auction?
In a reverse auction sellers are in competition to obtain the buyers business. The name reverse auction is apt because the role of buyers and sellers is reversed and instead of prices escalating, the prices generally go lower as sellers compete for the buyer's business.
What is the struggle between buyers and sellers to get the best products at the lowest prices?
That Would Be COMPETITION
What is the role of buyers and sellers in determining market clearing prices?
The sellers will determine how much they want the product to cost to make it worth producing. Buyers will determine how much they will spend on the product.
How are prices determined in a market economy?
it is being determined that, in a market economy, if buyers and sellers meet it will do effect in prices. for example: if the number of buyers increases the price also increases. so sellers will produce more goods and services. in the same manner, if the number of buyers will declined the price will go down so sellers now will produce in constant.
What is the meaning of the term reverse bidding?
The term reverse bidding refers to the concept where the role of the buyers and sellers of a typical auction is reversed. So sellers bid at lower and lower prices to acquire buyers.
What is supply and demand and how does it affect property prices?
Many buyers plus few houses available for sale means higher house prices - (a sellers market). Few buyers plus a surplus of houses for sale means lower house prices - (a buyers market).
What do bid and ask mean in currency conversion?
The bid and ask are the best prices offered by the buyers and sellers.
What country in Europe do buyers and sellers usually come to agreement on prices in order to trade?
Germany Russia and the UK
What is the communication between buyers and sellers called?
When consumers pay high prices, producers know that they are using their ___________ well.
Why market prices are better than government determined prices?
Market prices tend to an equilibrium where buyers' demand for the good is worth less than the sellers' cost of supplying the good. Put another way, buyers are willing to pay less than the amount producers are willing to accept. Government sets its prices above or below this point. If the price is above the equilibrium buyers will demand less than producers supply. On the other hand, if price is below the equilibrium sellers will supply less than buyers demand.
What is a transversal term contract?
A transversal term contract is a contract that allows multiple sellers to provide goods at fixed prices. The contract allows buyers to purchase goods from sellers for a certain amount of time at the prices set forth in the contract.
