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How does market economy determine its price?

In: Economics [Edit categories]

Answer:

Supply of the item and demand by other countries determines the price.

First answer by ID1267578883. Last edit by ID1267578883. Question popularity: 1 [recommend question].

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In a market economy what determines the price of a good or service?
supply and demand
Role of prices in market economies?
A signal for supply and demand to move to appropriate level. (High price => less demand more supply; low price => more demand but less supply)
Who determines the prices in your economy?
The Chancellor of the Exchequer or other equivalent financial leader in the government determines tax, and the companies themselves charge as much as they think they can get away with, yet still...
In a market economy what are prices are established by?
The forces of supply and demand in the market.
What determines production in a market economy?
Fundamentally, the decision of what is produced by private producers and the quantity that is produced is a function of revenue. Revenue is a function of the price that can charged for a commodity...