The demand and supply model determines

Question

Quizplus · Accepted Answer

The demand and supply model determines relative prices, which are the prices of goods and services in relation to other goods and services in the market. It takes into account the interaction between the quantity of goods supplied by producers and the quantity of goods demanded by consumers to determine the equilibrium price and quantity in the market. However, it does not necessarily determine the exact money prices of goods and services as that can be influenced by other factors such as taxes and subsidies.

The Demand and Supply Model Determines