Who Sets Prices In The Economy, Is It The Producers Or The Entrepreneur?
By admin on Feb 28, 2010 with Comments 5
My macroeconomic textbook sucks
Filed Under: Featured
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By admin on Feb 28, 2010 with Comments 5
My macroeconomic textbook sucks
Filed Under: Featured
Comments (5)
market sets prices, supply (producers or entrepreneurs) and demand (consumers) working against each other.
Who determined the Superbowl score – Saints or Colts?
It’s was both of them working against each other.
Your macroeconomic textbook is not relevant. Your question is in the microeconomic textbook. In the perfectly competitive market, the invisible hand, or the market will determine equilibrium price or market price. In imperfect competion, the producers will set price based on his market power and elasticity.
the consumer
supply and demand sets the the price.
nice post. thanks.