Consumer demand, product supply, and competition determine prices.

Question

Quizplus · Accepted Answer

Prices are typically set according to the interplay between consumer demand, product supply, and competition. When demand is high but supply is low, prices tend to go up. Conversely, when supply is high but demand is low, prices are likely to decrease. Competition between suppliers can also affect prices, as companies may adjust their pricing strategies to gain a larger share of the market.

Consumer Demand, Product Supply, and Competition Determine Prices