Explanation:
Intro to Determination of Prices
Price is the worth that buys a finite amount, weight, or another match of goods or services. In other words, it also expresses the value of the goods produced and the services rendered by factors of production such as land, labor, and capital. Thus, the determination of prices is of great significance in an economy.
Introduction to Determination of Prices
Determination of Prices means to determine the cost of goods sold and services rendered in the free market. In a free market, the forces of demand and supply determine the prices.
The Government does not interfere in the determination of the prices. However, in some cases, the Government may intervene in determining the prices. For example, the Government has fixed the minimum selling price for the wheat.
Browse more Topics under Determination Of Prices
Changes in Demand
Changes in Supply
Simultaneous changes in Demand and Supply
Features of Perfect Competition
Price Determination under Perfect Competition
Long Run Equilibrium of Competitive Firm and Industry
Monopoly Market
Monopolist’s Revenue Curve
Price Discrimination
Monopolistic Competition
Oligopoly
Kinked Demand Curve
