Price determination
What Price determination means in Economics GCSE, as defined for AQA.
Definitions of Price determination
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Reference: AQA
The interaction between supply and demand determines the equilibrium price where the market demand curve intersects the market supply curve.
Wages are determined by the interaction of labour demand and supply, with the market-clearing wage found where the curves intersect.
The purpose of the interaction between buyers and sellers is to establish a price for goods or services.
The setting of prices for goods and services through the interaction of supply and demand in a market.
Topics that use Price determination
- Equilibrium price (AQA GCSE)
- Markets and allocation of resources (AQA GCSE)
- The labour market (AQA GCSE)
Related terms
- Market equilibrium
- Market forces
- Price mechanism
- Circular flow of income
- Deductions
- Derived demand
- Determinants of supply and demand
- Disequilibrium
Using Price determination in the exam
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