btaliat
VIP Contributor
Have you ever wondered why almost all buyers in the same country sell a particular goods the same price. Have you now tried to ask yourself how this price is determined.
Price determination is always determined based on the type of economic system that a country practices. That is, whether a country practices socialism or capitalism. This will determine the price.
In capitalism, the price of a particular goods and products is determine by the force of demand and supply. This means the more people demand or the more goods and service are supplied will determine the price of such goods and products. Exceptional case may be under imperfect market where there maybe be arbitrary fixing of pricing by someone monopolist or oligopolists.
In contrary, in socialism, there is price regulation by the government. In this case, all the sellers of a particular goods and products through out the country sell at the same price unlike in capitalism where there may be slight different in prices base on location. Just like in capitalism, there may be exceptional to this as well, there may be deregulation by the government which may allow the individual to fix their prices.
Price determination is always determined based on the type of economic system that a country practices. That is, whether a country practices socialism or capitalism. This will determine the price.
In capitalism, the price of a particular goods and products is determine by the force of demand and supply. This means the more people demand or the more goods and service are supplied will determine the price of such goods and products. Exceptional case may be under imperfect market where there maybe be arbitrary fixing of pricing by someone monopolist or oligopolists.
In contrary, in socialism, there is price regulation by the government. In this case, all the sellers of a particular goods and products through out the country sell at the same price unlike in capitalism where there may be slight different in prices base on location. Just like in capitalism, there may be exceptional to this as well, there may be deregulation by the government which may allow the individual to fix their prices.