Question

The process by which market participants try to find an equilibrium price? 

A Equilibrium price Correct Answer Incorrect Answer
B Balancing Correct Answer Incorrect Answer
C Price exchange mechanism Correct Answer Incorrect Answer
D Price Discovery Correct Answer Incorrect Answer
E Market price determination Correct Answer Incorrect Answer

Solution

Price discovery is the general process used in determining spot prices. These prices are dependent upon market conditions affecting supply and demand. For example, if the demand for a particular commodity is higher than its supply, the price will typically increase (and vice versa)

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