BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Price
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Price stability
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Rate
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Inflation
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Detailed explanation-1: -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: -The price of a commodity is determined by the interaction of supply and demand in a market. The resulting price is referred to as the equilibrium price and represents an agreement between producers and consumers of the good.
Detailed explanation-3: -One example that shows the relationship between demand and supply in the economy is the monopoly market. In a monopoly market, the demand for goods and services is high, but the supply is low. This leads to an increase in the price of goods and service.