84
Lesson 84 of 84 · Economics
How Prices Are Set
Prices are determined by supply and demand. When many people want the same scarce product, prices rise. Competition among sellers can bring prices down.
Key Facts
1
Money is a medium of exchange.
2
Needs are different from wants.
3
Supply and demand affect prices.
Check Your Understanding
Question 1
1 of 2What is trade?