montaobrandon montaobrandon
  • 08-03-2016
  • Social Studies
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How does the market determine the price and the quantities supplied and demanded?

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WorldCitizen WorldCitizen
  • 08-03-2016
In a market economy, the price and the quantities of the goods are indirectly determined by the demand and supply:  there is a competition among the suppliers, which is however constrained by their production costs, and the consumers choose the best options: the interplay of these two factors causes the prices to meet "in the middle", creating an equilibrium.
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