Practical Applications of Price Determination
Dear student,
In an free market economy prices of the commodities is determined as per the forces of demand and supply. Moreover, the prices as determined by the market are also used as benchmarks by the government in case it needs to implement price ceiling or price floor.
In an free market economy prices of the commodities is determined as per the forces of demand and supply. Moreover, the prices as determined by the market are also used as benchmarks by the government in case it needs to implement price ceiling or price floor.