Economics SSS 2 Second Term
Student should be able to:
- Define price determination.
- Identify the effects of change in demand and supply on equilibrium price and quantity.
Price is the worth that buys a finite amount, weight, or another match of goods or services. In other words, it also expresses the value of the goods produced and the services rendered by factors of production such as land, labour, and capital. Thus, the determination of prices is of great significance in an economy. Determination of Prices means to determine the cost of goods sold and services rendered in the free market.
In a free-market economy, prices are determined by the forces of demand and supply. This is also known as Price Mechanism or Price System.
According to the laws of demand and supply, the higher the price the lower the quantity demanded while the.... View More
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