Introduction to Microeconomics

Facebook icon
LinkedIn icon
Twitter icon
< | < | <

3. The Determination of Prices

  • Introduction to Micro

Tags Austrian Economics OverviewPrices

01/22/2010Murray N. Rothbard

Price is determined by the equilibrium price and the equilibrium quantity. If your good is not selling, you lower the price. If your goods fly off the shelves you are selling too cheaply and you raise prices. Demand changes constantly, e.g. the shift to white wines away from dark hard liquor. Prices will fall when demand falls.

Part 3 of 14. Presented in 1986 at New York Polytechnic University.

Image source:
Shield icon interview