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Market in Wheat

Market in Wheat. Role of Buyers and Sellers. SSEMI1b- Role of buyers and sellers in determining price SSEMI1d- Explain how prices serve as incentives. Role of Buyers. Consumers want products at the cheapest possible price.

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Market in Wheat

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  1. Market in Wheat

  2. Role of Buyers and Sellers SSEMI1b-Role of buyers and sellers in determining price SSEMI1d- Explain how prices serve as incentives

  3. Role of Buyers • Consumers want products at the cheapest possible price. • Consumers decide how much of a certain good they are willing to buy based on price.

  4. Role of sellers • Sellers want to make as much as possible. • Producers must be convinced that their product will make money before they produce it.

  5. Incentives-Prices • People want to save as much money as possible. • They will look for the lowest price. • Producers will not produce a product that does not make them money. • They will only produce when marginal benefit exceed marginal costs Buyers Sellers

  6. Prices • Price is the monetary value of a product as established by supply and demand • Both producer and consumer must agree upon a price, so that both parties benefit.

  7. Voluntary Exchange • Both parties must freely and willingly agree upon exchange • Prices help this exchange take place.

  8. Competition

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