Saturday, September 1, 2018

PRICE MECHANISM


                            PRICE MECHANISM
Price mechanism can be defined as interaction between demand and supply in order to determine price of any commodity or service.

Example: During durga puja in Kolkata demand for tailor made clothes                                        increases. Therefore, many tailoring shop employs extra manpower to meet 
              the increase in demand. There is always a limitation on supply of skilled                        manpower thereof they higher demand higher wage rate. Resulting in                           increase in tailoring cost

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