Price Mechanism

The price mechanism is how we exchange goods and services in the modern world. Originally, we used the barter system which was a system of trade, however this relied on the people owning something of value for each other which couldn’t be guaranteed so money provided as that medium of exchange between the barter system creating the price mechanism. The price mechanism involves using the invisible hand of market forces to shift a product along the supply curve…

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Prospective Economics Student

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