Brigat7831 Brigat7831
  • 20-06-2017
  • Business
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What does the interaction of the producer and the consumer establish?

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meerkat18
meerkat18 meerkat18
  • 03-07-2017
They both establish a market price. It is the price that the consumers pay to willing producers. It is defined by the law of supply and demand. The higher the consumer demand the higher the price set by the producers. 

Usually, the market price is at the Equilibrium Market Price made with the interaction of the supply and demand. 
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