Market forces are the economic factors affecting the price, demand, and availability of a commodity.
Think of market forces like the weather conditions that affect a surfer's ride. Just as wind, tide, and swells determine how good or bad a surfing day can be, supply and demand (market forces) influence the price and availability of goods in an economy.
Supply: The total amount of a specific good or service available to consumers.
Demand: The desire of consumers for a particular good or service supported by the capacity to purchase it.
Equilibrium Price: The price at which supply equals demand for a product.
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.