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Unformatted text preview: went up, because more and more people are now out on the road doing business on the go. More money in their pockets, more of a demand for fuel, excess demand causes the price to rise. The housing market, excess supply causes the price to drop. My father is looking to retire soon and Florida is a place where he was looking. Some of the properties there in Florida used to sell for well over $270,000 now are being sold for just over $100,000. I told him that he should sill spend the $270,000 and buy 3 properties and rent the other two out. Price mechanism is a fancy way of saying bartering or negotiating the price . There is a lot of economies that still use bartering as a way to do business. By using price mechanism, this tactic helps to keep the price more stable and not cause the price to increase and decrease as much under outside influences. Econ 210 - Assn 2-2 References None...
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