Prices and Markets

Prices and markets are fundamental concepts in economics. A market is a space where buyers and sellers come together to trade goods and services. Prices are determined by supply (how much of a product is available) and demand (how much people want that product). When demand is high and supply is low, prices tend to rise. Conversely, when supply is high and demand is low, prices often fall. This interplay helps allocate resources efficiently, signaling to producers what to create and to consumers what is available, ultimately driving economic activity and influencing living standards.