BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Where supply and demand meet
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How many substitutes are available
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The quality of goods that are produced.
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If a consumer thinks it is a want or a need.
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Detailed explanation-1: -Summary. Market prices are dependent upon the interaction of demand and supply. An equilibrium price is a balance of demand and supply factors. There is a tendency for prices to return to this equilibrium unless some characteristics of demand or supply change.
Detailed explanation-2: -Quantity demanded depends on the price of a good or service in a marketplace. The price of a product and the quantity demand for that product have an inverse relationship, according to the law of demand.
Detailed explanation-3: -It’s a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise. There is an inverse relationship between the supply and prices of goods and services when demand is unchanged.
Detailed explanation-4: -A market-clearing price is the price of a good or service at which quantity supplied is equal to quantity demanded, also called the equilibrium price.
Detailed explanation-5: -Answer and Explanation: The supply of goods and services also impacts the demand for factors of production in the factor market. The demand for factors depends upon the need of the producers. Depending upon the goods that are supplied in the market by the producers, the factor demand is also determined.