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In terms of basic economic theory, one idea is that the market itself will determine the price of the goods and services. The laws of supply and demand will allow the marketplace to determine pricing. How does that work? Glad you asked. Let's look at the most fundamental ideas and create a picture.
A supplier or suppliers will set a price and promote their goods/services. Consumers will buy them as they want/need them. If the demand is strong and supply stays the same, price will creep up. If buyers don't demand a lot but supply remains high, prices will edge down. Should demand creep up and supply rise faster than demand, prices may edge down. Should supply slip but demand remain high or rise, price will edge up. With these ideas in place, just think about the process and it will make sense.
Suppliers and consumers will compete with each other and with themselves to "adjust" prices in the marketplace. Prices will vary a bit around an "equilibrium point" of sorts based on supply and demand. The bottom line remains that the marketplace will determine the price of the goods/services per the laws of supply and demand. Use the link below to read more on supply and demand.
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The market supply curve is?
The market supply curve shows the amount of goods/services produced at any given price. There is a direct relationship between output and price. That is, if the price of goods and services is high, then sellers will produce a large number of goods and services. Conversely, if the price of goods/services is low, then output will also be low.
The consumer price index attempts to measure changes in?
The price of a select market basket of goods and services.
The negotiation of prices for goods and services depending on supply and demand is referred to as which of these?
Price mechanism (A+)
How are goods and services distributed in market economy?
To consumers based on the basis of their ability and willingness to pay the existing market price
In a market system what determines how many goods and services an individual can buy?
The Price,Supply, and Demand.
The market supply curve is?
The market supply curve shows the amount of goods/services produced at any given price. There is a direct relationship between output and price. That is, if the price of goods and services is high, then sellers will produce a large number of goods and services. Conversely, if the price of goods/services is low, then output will also be low.
The consumer price index attempts to measure changes in?
The price of a select market basket of goods and services.
The negotiation of prices for goods and services depending on supply and demand is referred to as which of these?
Price mechanism (A+)
What is above-market pricing?
Above-market pricing is pricing a good higher than the current market comparable and what a buyer paid for like products or services. It is inflating the price over what the market dictates.
How are goods and services distributed in market economy?
To consumers based on the basis of their ability and willingness to pay the existing market price
What terms best describe an increase in the general market price prices of goods and services?
Inflation
In a market system what determines how many goods and services an individual can buy?
The Price,Supply, and Demand.
What is the definition of the term market rates?
The market rate is the usual price charged for goods and services in a free market. As the demand and supply of a certain product change so will the price of the items.
How does the price system affect goods and services?
goods and services whether it may be anything price will be there for it
Does Ecuador have a command economy?
a good one, kinda raffael correa is the president
What is GDP at market price?
GDP at market price- It s the money value of all final goods and services produced within the domestic territory a country in an accounting year at prevailing market prices.
What are the concequences of implimenting minumum or maximum prices for goods and services?
When a maximum price is set for a good or service, it is set below the equilibrium. This is supposed to help consumers but due to the excess demand, a black market will emerge and goods and services will be sold at black market prices (which will be higher than the maximum price or price ceiling) A minumum price is set abouve the equlibrium price. This is done to help producers, however all this will do is create an excess supply and a black market will emerge where goods will be sold at a lower price.
