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Essay

The Determinants Of Factors Of Price

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Issue:

Business

 

Written by:

Sue B

 

Date added:

January 13, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1115

 

Was viewed:

6386 times

 

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Essay content:

Interaction of the forces of Demand and Supply:- In a perfectly competitive market or what is sometimes referred to as a free market economy, prices are determined by the interaction of the forces of demand and supply. The determination of prices by the interaction of the invisible forces of demand and supply is known as the ‘price mechanism’ or ‘price system’...
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On the other hand, the higher the price the greater the quantity supplied. But there will be a price at which the quantity demanded equals the quantity supplied. This is known as ‘the equilibrium price’ the equilibrium price is the market price for the commodity. Changes in demand and supply lead to price changes...
displayed 300 characters

General issues of this essay:
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