Price Mechanism Explanation

[ebliss]

Hi, so pretty much I understand the concept behind the price mechanism, but while taking notes I'm struggling to put it into words that will satisfy the syllabus.

My textbook is really vague and all of the websites seem to think that it doesn't merit much explanation because it's a simple concept.

Is there anyone who is able to explain to me or send me some notes that would help me be able to write to the 2013 syllabus standards?

Thanks!

[YellowSpider]

Hi, so pretty much I understand the concept behind the price mechanism, but while taking notes I'm struggling to put it into words that will satisfy the syllabus.

My textbook is really vague and all of the websites seem to think that it doesn't merit much explanation because it's a simple concept.

Is there anyone who is able to explain to me or send me some notes that would help me be able to write to the 2013 syllabus standards?

Thanks!

well, you must use economic terms with a good explanation.. that's for sure.

i'll try explaining it to you and i can also send you notes on the microeconomics section so give me your email address.

this is basically how the market forces of demand supply determine the prices of goods in an economy. (i hope you know the laws of demand and supply) so producers supply more as prices increase and supply less when prices decrease,, and the inverse relationship for demand... link this to market equilibrium, where the prices are set once consumers agree to purchase goods at prices at which producers are ready to supply.. ,, so maybe bring in the price signal a bit? :/

[ebliss]

Okay, thanks a lot for your reply. That helps me tie it toghether, thanks again!