Which is more active in determining price-demand or supply? Explain.
Dear student,
Prices are determined in a free market economy through the interactions of supply and demand in the marketplace, where demand is the quantity of a product that buyers are willing to purchase according to a given price and supply is the amount of a product that sellers can vendor to customers at a given price. Until there is no equilibrium between the forces of demand and supply, price can not be fixed.
Therefore both supply and demand plays an equally active part in determining price.
Regards