Module 3 Study Questions; AGEC 314_598.docx - Nathan Cobb...

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Nathan CobbAGEC 314-598Module 3 Study QuestionsChapter; 7, 8, 9Chapter 7 Study Questions; 1, 51.I think that a price discovery system has more frequent price changes than that of a pricesetting system. Price discovery means that the price changes differently according to thecommodity that is being sold. The prices are always different because the buyers and the sellersdecide the price changes. For the price setting system, their price changes are shifted by supplyand demand of certain commodities. It all depends on when the suppliers choose to raise theprices, and then they will only supply what is going to be demanded by the consumers. Thegovernment has the majority of the say in price setting system to help regulate the supply anddemand of all commodities.2. Yes, supply and demand effects the changes of prices in a price setting system. If the supply ofa certain commodity is in excess, the prices are going to decrease so that the consumers willpurchase more of that commodity. If the supply is below the demand, the prices will be increased
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Term
Spring
Professor
Dharmasena
Tags
Supply And Demand, frequent price changes, Nathan Cobb, price discovery system

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