The market price of a commodity is determine by the

The market price of a commodity is determined by the interaction of demand and supply. In simple terms, when a commodity is in high demand but there is limited supply, its price tends to increase. On the other hand, when there is a surplus of supply but low demand, the price tends to decrease. Therefore, the equilibrium price is reached at the point where the quantity demanded by consumers is equal to the quantity supplied by producers. This interaction between demand and supply is the primary determinant of the market price of a commodity. The law of demand states that as the price of a commodity increases, the quantity demanded decreases, and vice versa, which is a crucial factor in determining the equilibrium price in the market.