Economics B A-Level
The price mechanism
What The price mechanism means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of The price mechanism
Check what you remember
Read the wording for your board, then hide it and explain The price mechanism in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
The role of market forces in restoring market equilibrium without external intervention, as prices adjust to eliminate excess demand and excess supply.
Topics that use The price mechanism
- Price determination (Pearson Edexcel A-Level)
Related terms
- Ceteris paribus
- Excess demand
- Excess supply
- Incentives and rationing
- Market dynamics
- Market equilibrium
- Market-clearing price
- Non-price determinants
Using The price mechanism in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics B questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Economics B A-Level termsA week of Premium from your first lesson · Then the free plan continues · No card, no charge