Market price is the current price of a product or service at any given moment. Normal price is its prevailing price over time. Normal price is hypothetical: It is the presumed cost of a product or service without the push and pull of supply and demand, based on its cost over a long period.<\/p>" } } , { "@type": "Question", "name": "How Did the COVID-19 Pandemic Affect Market Prices?", "acceptedAnswer": { "@type": "Answer", "text": "
The COVID-19 pandemic produced a classic example of the effects of supply and demand on the market prices of many products from 2020 until 2023. A breakdown in the supply chain disrupted the delivery of imported products from auto parts to gasoline to shoes. A backup in delivery of products from warehouses to stores across the U.S. slowed the delivery of staple products like toilet paper. To top it all off, a flood of government money directly to taxpayers increased demand for durable goods like refrigerators.<\/p>
All of these factors reduced supply and drove up market prices. The end result was an increase in overall inflation.<\/span><\/p>"
}
}
,
{
"@type": "Question",
"name": "What Causes Market Prices to Change?",
"acceptedAnswer": {
"@type": "Answer",
"text": " The market price of a product or service is determined by the law of supply and demand. If the amount supplied is roughly the same as the amount demanded, the price will stay the same. When the amount supplied exceeds the amount demanded, or vice versa, the market price will decline or increase.<\/p>"
}
}
]
} ] }
]