What makes prices rise and fall? Do candymakers have a meeting and decide how much they will charge for their candy? Or does the government command candymakers to lower their prices? Who actually determines the prices of the stuff we buy? It might seem like mysterious forces are at work, but that's not the case.
Prices for most goods and services are determined in markets by what economists call supply and demand. This course will use a fictitious chocolate market to help you better understand how supply and demand work together to determine prices.
NOTE: This course assumes that you already understand the economic concepts of demand and supply. If you do not have a deep understanding of demand and supply, please finish the EconLowdown Demand and Supply modules first.