The price of a commodity is determined where _______.

demand is greater than supply

No worries! We‘ve got your back. Try BYJU‘S free classes today!

demand is less than supply

No worries! We‘ve got your back. Try BYJU‘S free classes today!

demand is equal to supply

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

none of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A demand is equal to supply
1:Prices are determined solely by supply and demand conditions. If demand is more than supply, that will result into higher prices and vice versa.
2:Price of a commodity is determined by the interaction between the demand for and supply of it.

Suggest Corrections