The price of a product in the marketplace is determined by the interaction of the supply of the product and its demand. This was the great contribution of Alfred Marshall in 1890. However, the market price is determined by many factors, not just the price and quantity offered for sale, but also many different contributing factors. These are dealt with extensively in this and several other classes.
Students should be aware of the various influences that determine the amount supplied on the market, and the determinants of the demand for the product. It is the interaction of all these forces that determines the market price and the amount of the product available on the market. This is a very important class and one that we will mention many times throughout the course, we suggest that you study it carefully.