The primary source(s)of price variability is

Question

Quizplus · Accepted Answer

Price variability is primarily caused by the fluctuations in both demand and supply. If there is an imbalance in supply and demand, the price of a product or service will increase or decrease accordingly. For example, if demand for a product increases but supply remains constant, the price of that product will increase to reflect the higher demand. Alternatively, if there is an oversupply of a product, the price will decrease as suppliers attempt to sell off excess inventory. Therefore, demand and supply variability are the primary sources of price variability.  Unemployment may affect demand variability and thereby influence price variability, but it is not the primary factor.

The Primary Source(s)of Price Variability Is