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The price is decided by how many goods of that kind are produced and how many comsumers are going to buy the good.
For example, suppose a music company produces 1,000 CDs priced at $16.95 each, but 1,100 people want to buy them. There are not enough CDs to satisfy the wants of these consumers. Because demand for the good is greater than the supply, the seller can increase the price to $17.95. He or she sells all the CDs and makes an extra $1.00 profit on each.
Now suppose the seller offers 1,000 more CDs at the origanal $16.95 price. One hundred sell right away, leaving 900 CDs that no one wants at this price. The seller then reduces the price to $15.95. The seller didn't get as much of a profit as the first time when they sold the CDs.
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Which economic system decide what to sell and what price?
If the government is deciding which goods to sell and at what price, it is known as a command economy. If individuals are deciding, it is known as a market economy.
Price determines the answers to the three basic economic questions?
There are three basic economic questions answered by price. Who will buy the goods and services produced? What goods and services need to be produced? How should these goods and services be produced?
A system of allocating scarce goods and services using criteria other than price is .?
A system of allocating scarce goods and services using criteria other than price is _____.
What controls the price of goods and services in the economic system of communism?
Economic activities in the communist system is controled by the public in the sense that the government tries to control all economic activities by setting up different organizations and sectors in order to provide social-economic demands to the public or citizen.
What is an alternative system for distributing goods and services other than price?
barter system
How is the price of goods decided in the U.S. economic system?
By the "market".
Which economic system decide what to sell and what price?
If the government is deciding which goods to sell and at what price, it is known as a command economy. If individuals are deciding, it is known as a market economy.
Price determines the answers to the three basic economic questions?
There are three basic economic questions answered by price. Who will buy the goods and services produced? What goods and services need to be produced? How should these goods and services be produced?
How does the price system affect goods and services?
goods and services whether it may be anything price will be there for it
Economic condition in which the price of goods and services drops?
Deflation by: Andrea Burke
How gold price decided?
the stock market. if there is more found in one day, or there is an economic crash, the price is lower, less found or an economic boom price is up. try this site its useful http://gold-price-blog.info/
A system of allocating scarce goods and services using criteria other than price is .?
A system of allocating scarce goods and services using criteria other than price is _____.
What controls the price of goods and services in the economic system of communism?
Economic activities in the communist system is controled by the public in the sense that the government tries to control all economic activities by setting up different organizations and sectors in order to provide social-economic demands to the public or citizen.
What is an alternative system for distributing goods and services other than price?
barter system
What determines the price of goods in a free enterprise system?
Supply and demand
What economic system allows business owners decide what to sell and at what price?
The open economic system is the one that allows business owners decide what to sell and at what price. This is usually quite unfair for the consumers.
What are the effects of price controls?
The answer to your question depends mostly on the type of goods controlled. If the goods are necessities, then the control helps the poor people of the economy and ensures their sustainability. If the goods are not necessities, then price fixing will retard economic growth and discourage production of the said commodity.
