Asked by Megan Olsen on May 02, 2024
Verified
When supply is fixed or the product is unique, then price is
A) supply determined.
B) demand determined.
C) government determined.
D) indeterminate.
Supply Fixed
A situation where the availability of a good or service is limited and cannot be easily adjusted.
Unique Product
A product that is different from anything else on the market, either because of its brand, design, or functionality, giving it a competitive advantage.
Price
The financial requirement for obtaining a service or good.
- Identify the function of supply and demand in determining prices and quantities within the market.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
B
Explanation :
When supply is fixed or the product is unique, the price is primarily determined by demand, as the limited availability of the product means that consumers' willingness to pay becomes the main factor in setting the price.
Learning Objectives
- Identify the function of supply and demand in determining prices and quantities within the market.