Economics 1--suppy and demand determine prices.

AI Overview

The price of goods and services is determined by the interaction of supply and demand in a market. When the quantity of a product that producers are willing to sell (supply) meets the quantity consumers want to buy (demand), an equilibrium price is reached, where buyers and sellers agree on an exchange. Factors like changes in consumer willingness to buy or producer ability to supply can shift these curves, causing prices to rise or fall accordingly