Supply and demand coordinate to determine prices by working together. competitively. with other factors. separately.

Supply and demand coordinate to determine prices by working together.

Prices in the market are determined by the forces of supply and demand in the market, among other factors such as consumer income, etc.

Further ExplanationDemand Demand refers to the ability and willingness of consumers or buyers to buy a quantity of goods or services at a particular price.Consumers will buy certain quantity of goods or services at a particular price in the market. Demand of goods or services by the consumers is determined by the prevailing market price, such that the higher the price the higher the demand.SupplySupply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.  Producers and suppliers will supply goods and services at the most favorable market price that id determined by the forces of demand and supply among other factors.Demand and supply in determination of market priceDemand refers to the quantity of goods or services that consumers are willing and able to buy at a particular price while supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.  One of the factor that determine market prices are the forces of demand and supply, this is based on the ability and willingness of buyers and sellers to undertake selling and buying.Buying and selling occurs at an equilibrium price that is agreed upon by sellers and buyers.  This means the sellers and buyers are willing to exchange a certain quantity of a commodity at this price. Thus, price depends on the demand and supply in the market.

Keywords: Supply, Demand, Prices

Learn more about Supply: Demand: Law of supply: Price determination:

Level: High school

Subject: Business

Topic: Demand and supply

Sub-topic: Price determination