Question

​janice is starting a new business and is confused about how to determine the price to set for her product. she comes to you for advice and you tell her, correctly, that the two factors that determine the price at which a product will sell are

Answer 1

The two major factors are the supply of the product and the demand for it. These work together to set an equilibrium price that would be considered the market rate for the item under consideration. Changes and shifts in either of the two factors will cause the market price to change accordingly.