Question

What are the two forces in determining the price of the goods?

Hint:

Price is determined by a tug-of-war between what buyers are willing to pay (demand) and what sellers are willing to accept (supply).

Answer 1

The two fundamental forces that determine the price of goods in a market economy are:

Demand: The quantity of a good that consumers are willing and able to buy at various prices.
Supply: The quantity of a good that producers are willing and able to sell at various prices.
The interaction of these two opposing forces sets the equilibrium price.