Question

The exchange value of product is called​

Answer 1

Answer:

use value (or utility); an exchange value, which is the proportion at which a commodity can be exchanged for other commodities; a price (it could be an actual selling price or an imputed ideal price).

Answer 2

QUESTION:-

The exchange value of product is called

ANSWER:-

• Price is the answer.

• The exchange value of product is called Price.

EXPLANATION:-

• Price of the product is the exchange value of the particular product. It is the most important determinant of the demand for a commodity is the price of the commodity itself. Normally, there is an inverse relationship between the price of the product and the quantity demanded. It implies that the lower the price of the commodity, the larger the quantity demanded; and the higher the price, the lesser the quantity purchased.

• Price Demand refers to different quantities of a commodity which are purchased at different prices. We shall explain this in detail under the Law of Demand.

• Economic goods have a price because they are useful as well as scarce in their availability. It is only because economic goods are useful that they are demanded by people, and only because they are scarce that sellers are prepared to sell them at a price.

• But usefulness and scarcity are only the underlying forces. Usefulness expresses itself in the form of demand by buyers, and scarcity expresses itself in the form of supply by sellers. Therefore, prices of goods and services in a free enterprise economy are determined by the interaction of forces of demand and supply.

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