Discussion Board Question:In our mixed economic system, who really decides prices? Producers or...

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Discussion Board Question:In our mixed economic system, who really decides prices? Producers or Consumers?In answering this question, you may want to consider the following issues:Is it necessary for producers and consumers to sit down and discuss price levels?What role do brand names play in prices and your purchasing habits?Does the law of demand always hold true?Why do producers spend so much money on advertising, shaping our tastes and preferences?Are there markets where you see a need for price controls?https://mega.nz/folder/CwlBXbYK#M_e5qZbn2_nx_A1-AEOYQA

Alomita · Accepted Answer

1. The prices of goods are not individually determined by the producers or the suppliers.  When the price of a good falls, consumers will buy more of that good. But the producers have to also make profit from what he sells. The  prices of good depend on a number of factors like, its availability, is it a scarce resource, it is abandoned and most important , in which market and circumstances the product is being sold.
2.  It is absolutely not necessary for the producers and the consumers to sit down and discuss the price level or in other way,

Discussion Board Question: In our mixed economic system, who really decides prices? Producers or Consumers? In answering this question, you may want to consider the following issues: Is it necessary...

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