Prices are the driving force behind every buying and selling decision in a market economy. Prices are determined by the supply and demand equilibrium and are influenced by the price elasticity of demand and supply of goods and services.

Based on the outcome of the simulation, was the sale price you set the same as the equilibrium price? Refer to thesupply and demand modelto explain why they might be different.

Imagine that you own your own business. How would price elasticity of demand impact thepricing decisionsof your business?

What are thedeterminants of price elasticityof demand? Identify at least three examples.

SELLER - Market Closed My Summary Orders Transactions Unit Cost Price Prot 1 $0.50 $1.27 $0.77 2 $0.75 $1.11 $0.36 3 $1.00 $1.11 $0.11 Total Prot: $1.24