1.2.6-1.2.7 price determination/mechanism Flashcards
(2 cards)
1
Q
what is market equalibrium
A
it’s a situation in which the quantity of a good and service supplie by producers equals the quantity demanded by consumers
2
Q
what is price mechanism?
A
the price mechanism refers to the way price changes in response to changes in demand or supply, so that a new equilibrium position is reached
