Freight being moved around Southampton docks

What is the primary role of price in a market?

• To act as a signal for supply and demand

• To set the production cost

• To determine the quality of a product

• To establish brand identity

Which of the following is a factor that influences price determination?

• Technological advancements

• Historical events

• Weather conditions

• Consumer preferences

How does an increase in price typically affect consumer behavior?

• Increases demand

• Decreases demand

• Has no effect

• Increases supply

What is a potential market reaction to a sudden drop in prices?

• Increased consumer spending

• Stable market conditions

• Decreased product availability

• Higher production costs

Which of the following best describes the relationship between price and market equilibrium?

• Price is irrelevant to market equilibrium

• Price disrupts market equilibrium

• Price helps achieve market equilibrium

• Price has no effect on market equilibrium