The price of a commodity is determined by the

The price of a commodity is determined by the interaction of demand and supply. When there is a high demand for a commodity and the supply is low, the price tends to increase. On the other hand, when the demand is low and the supply is high, the price tends to decrease. The point at which the demand and supply curves intersect is known as the equilibrium price, and this is the price at which the quantity of goods demanded is equal to the quantity of goods supplied. Therefore, it can be said that the price of a commodity is determined by the forces of demand and supply in the market.