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How price is determined in a free market situation.
- Prices are determined by the supply and demand forces
in the market.
- When price is high supply is high but the demand is
low. When the price is too low the supply is also low,
but the demand is high.
- When quantity demanded is equal to quantity supplied
then this is an equilibrium price. Thereās no
competition among supplier and consumers because
both parties are satisfied
john3 answered the question on December 14, 2017 at 07:54
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