Price Fluctuations in Relation to Economic Activities

Economic activities refer to the production, distribution, and consumption of goods and services within an economy. Here are some examples of how economic activities can affect price fluctuations:

Supply and demand: When the supply of a product or service increases, and the demand remains the same, the price will typically decrease. Conversely, if the demand for a product or service increases, and the supply remains the same, the price will typically increase.

Inflation: Inflation occurs when the prices of goods and services increase over time, reducing the purchasing power of money. Inflation can be caused by an increase in demand for goods and services, a decrease in supply, or an increase in the money supply.