0
What else can I help you with?
How does the interaction between supply and demand determine prices in a market?
The interaction between supply and demand in a market determines prices. When demand for a product is high and supply is low, prices tend to increase. Conversely, when supply is high and demand is low, prices tend to decrease. This balance between supply and demand helps establish the market price for a product or service.
What does an increase in supply of an item usually mean for a consumer?
lots of supply and low demand = lower prices lots of demand and low supply = higher prices demand and supply high = normal prices demand and supply low = normal prices
What are factor determine demand curve?
Demand influences supply. When there is high demand for items, supply is lower, thus increasing the cost. When there is low demand, supply is high, thus decreasing costs.
When according to the law of supply and demand when supply increases what else happens?
According to the law of supply and demand when supply increases, prices will decrease.
What two forces determine prices in a market economy?
In a market economy, prices are primarily determined by the forces of supply and demand. Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices, while supply represents the quantity that producers are willing to offer for sale. When demand exceeds supply, prices tend to rise, and when supply exceeds demand, prices generally fall. This dynamic interaction helps to allocate resources efficiently within the economy.
What Two main factors that determine price?
The two main factors that determine price are supply and demand. When supply increases or demand decreases, prices tend to fall. Conversely, when supply decreases or demand increases, prices tend to rise.
How does the interaction between supply and demand determine prices in a market?
The interaction between supply and demand in a market determines prices. When demand for a product is high and supply is low, prices tend to increase. Conversely, when supply is high and demand is low, prices tend to decrease. This balance between supply and demand helps establish the market price for a product or service.
What does an increase in supply of an item usually mean for a consumer?
lots of supply and low demand = lower prices lots of demand and low supply = higher prices demand and supply high = normal prices demand and supply low = normal prices
What are factor determine demand curve?
Demand influences supply. When there is high demand for items, supply is lower, thus increasing the cost. When there is low demand, supply is high, thus decreasing costs.
Explain the process of supply and demand and how prices rise and fall?
Prices will fall when the demand is much lower than the supply. When the supply is lower, there is greater demand, therefore, the prices will rise.
When according to the law of supply and demand when supply increases what else happens?
According to the law of supply and demand when supply increases, prices will decrease.
How are prices determined in a well functioning economy?
By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.
Why are the corn prices coming down so much?
Corn prices are declining because the demand is not as high anymore. Usually the relationship between supply and demand will determine how prices of a certain item rises and falls.
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.
How is today's gold prices increase or decrease?
as with any product, prices will fluctuate with demand and supply. if the demand increases or supply is reduced, prices will rise. if demand falls or there surplus supply, the opposite also occurs.
What method does 'OPEC' use to raise the price of oil?
OPEC uses supply and demand to determine prices. If they want to raise the price, they slow down production. The lower supply will equal higher prices.
Who determines prices?
supply and demand
