👉 Price fluidity refers to the degree to which the prices of goods or services in a market can change in response to supply and demand dynamics. In a highly fluid market, prices tend to adjust rapidly and frequently in reaction to shifts in these factors, such as changes in consumer preferences, production costs, or external economic conditions. Conversely, a less fluid market experiences slower price adjustments, often due to inelastic demand or supply constraints. This concept is crucial in understanding market behavior and predicting how prices might evolve over time, impacting economic decisions for both consumers and businesses.
