Price of a product is determined in a free market by

1.	Price of a product is determined in a free market by
Answer» Both demand and SUPPLY PRICE of a product is determined in a free MARKET by both demand and supply. In microeconomics, supply and demand is an ECONOMIC model of price determination in a market. It postulates that, holding all else equal, in a competitive market, the unit price for a particular good, or other traded item such as labor or LIQUID financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.

Answer»

Both demand and SUPPLY

PRICE of a product is determined in a free MARKET by both demand and supply. In microeconomics, supply and demand is an ECONOMIC model of price determination in a market. It postulates that, holding all else equal, in a competitive market, the unit price for a particular good, or other traded item such as labor or LIQUID financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.

Discussion

No Comment Found

Related InterviewSolutions

In May 2013, firm was supplying 500kg of sugar at market price of Rs.30/- per kg. During June 2013, firm's supply of sugar had decreased to 450kg at price of Rs.20/- per kg. These changes show that supply of sugar is
In perfect competition, the firm's _____ above AVC has the identical shape of the firm's supply curve
Scarcity means
Economic profit is
A firm encounters its 'shutdown point' when
Under Marginal utility analysis, utility is assumed to be a
A higher indifference curve shows
Price discrimination will be profitable only if the elasticity of demand in different markets into which the total market has been divided is
For inferior commodities, income effect is
Elinor Ostrom and Oliver Williamson are the Nobel Prize Laureates in Economics in 2009. Do you know in which year was Francois Quesnay's Tableu Economique published?