The type of price achieved when supply meets demand is called equilibrium price.
What does a relative price compare? In simple terms and only one sentence.
A relative price compares the value or cost of one good or service to another, indicating the relationship between their prices.
According to the law of demand, what role do low prices serve for buyers? In simple terms and only one sentence.
According to the law of demand, low prices serve as an incentive for buyers to increase their quantity demanded.
How would supply shift caused by lower costs of production affect price and quantity? In simple terms and only one sentence.
If the supply shifts due to lower costs of production, it would result in a decrease in price and an increase in quantity supplied.
What is price competition? In simple terms and only one sentence.
Price competition refers to a situation in which businesses engage in lowering prices to attract customers and gain a competitive advantage in the market.
Why are banks important to producers? In simple terms and only one sentence.
