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PLEASE I REALLY NEED HELPP!!!

What role do supply and demand play in determining prices for goods and
services?

1 Answer

3 votes

Answer:

When Demand < Supply

Price reduces

Case II

Demand > Supply

Price increases

Step-by-step explanation:

There are two cases with these two factors in determining the price of goods and service

Case I

When Demand < Supply

In this case there are several providers of goods and services and there is over production as compared to the demand which leads to reduction in price.

Case II

Demand > Supply

When the demand is higher than supply, the price of goods and services shoot up

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