52
Lesson 52 of 84 · Economics
How Prices Are Set
Prices are determined by supply and demand. When many people want the same scarce product, prices rise. Competition among sellers can bring prices down.
Key Facts
1
Every choice has an opportunity cost.
2
Money is a medium of exchange.
3
Needs are different from wants.
Check Your Understanding
Question 1
1 of 2What happens when demand is high and supply is low?