Market Price

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Title: Market Price

Essay Details:

Subject: Business

Author: Thomas S

Date: August 1, 2012

Level: University

Grade: B

Length: 4 / 1143

Essay text:

Prices usually play an important role in these markets. EQUILIBRIUM PRICE AND OUTPUT:- In the absence of government intervention, price is determined by demand and supply. The equilibrium price is where demand and supply are equal. At this point there are no forces causing the price to change. The quantity which consumers want to buy will equal the quantity which producers want to sell at the current price. At prices higher than the equilibrium price the quantity supplied will be greater than the quantity demanded and the excess supply would oblige sellers to lower their prices in order to dispose of their output...

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