Who Really Controls the Prices in the Market?

So, now you know the demand for your product and how much you want to sell it at a given price. But who decides these prices? How do consumers and producers ensure that the quantity demanded is equal to the quantity supplied?

Let’s watch this video to learn more.

In this video, you learnt that the demand and supply curves in a market come together to determine a price at which both the consumers and producers are in equilibrium. 

You then learnt that when the demand or supply curve shifts, there is an impact on the price and quantity of the product. This impact can be an increase or decrease, depending on the magnitude of shift in the demand and supply curves. Given below is a table summarising the impact of shifts in the demand and supply curves.

(P indicated Price and Q indicated the quantity)

In the next segment, you will get to revise the concepts using an example.