ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The interaction of supply and demand.
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demand
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supply
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None of the above
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Detailed explanation-1: -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-2: -Market prices are dependent upon the interaction of demand and supply. An equilibrium price is a balance of demand and supply factors.
Detailed explanation-3: -Supply and Demand of goods determines the price and quantity produced of most goods.
Detailed explanation-4: -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-5: -The equilibrium price is the price at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves. A surplus exists if the quantity of a good or service supplied exceeds the quantity demanded at the current price; it causes downward pressure on price.