How is the price of an item determined? Examples.
| September 27, 2020 | Education
Price is the amount of money for which a product or service can be sold. The price of a product is determined by the law of supply and demand.
Demand should not lag behind supply, but supply should not exceed demand in order to make a profit. Example: the cost of making a knitted hat is 300 rubles, when the price is set at 600 rubles, the demand satisfied the supply, because in a nearby store similar hats are sold for 800 rubles.
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