QAEconomics › Supply and demand coordinate to determine prices by working
Q

Supply and demand coordinate to determine prices by working

1) together.

2) competitively.

3) with other factors.

4) separately.

A

Answer: 1. Together

Supply and demand coordinate to determine prices by working together, as an increase in one results in a corresponding increase in the other. Inherently, both demand and supply work together to dictate the price of goods and services.

Independently, neither demand nor supply has the ability to affect the price of goods in the market such that a constant market price can be achieved throughout a market.

4 months ago
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