How to supply and demand work together to determine price? In other words, what happens to both supply and demand when prices rise/fall?

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asked Apr 4, 2018 68.5k views

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Patdugan · Answer 1 · 2018-04-09T02:13:00+0000

A key function of the market is to find the equilibrium price when supply and demand are in balance. At this price, the goods supplied are equal to what is being demanded thereby bringing about the most efficient allocation of the goods.

How to supply and demand work together to determine price? In other words, what happens to both supply and demand when prices rise/fall?

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