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in a market economy.. the prices are decided by demand and supply....or compention
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What is the principle idea that the invisible hand of competition sets prices and determines quantities produced in a market economy?
Adam Smith
In a market economy who determines the market price?
Compention
What determines the prices of goods and services in the product market?
Supply and demand. Supply and demand determines the prices of goods and services in the market.
What is the economy in which the interaction of supply and demand determines price and output?
Market Economy
Explain Why the law of demand can apply only in a free market economy?
The law of demand is that, all other factors held constant, the quantity of a good demanded increases as the price of that good falls. In a command economy, unlike a free market economy, it is the govenment, not market supply and demand,that determines prices.
What is the principle idea that the invisible hand of competition sets prices and determines quantities produced in a market economy?
Adam Smith
In a market economy who determines the market price?
Compention
What determines the prices of goods and services in the product market?
Supply and demand. Supply and demand determines the prices of goods and services in the market.
What is the economy in which the interaction of supply and demand determines price and output?
Market Economy
Explain Why the law of demand can apply only in a free market economy?
The law of demand is that, all other factors held constant, the quantity of a good demanded increases as the price of that good falls. In a command economy, unlike a free market economy, it is the govenment, not market supply and demand,that determines prices.
Who determines what goods are produced in a market economy?
The Market(consumers... through their decisions) does it.
Which of the terms describes an economy in which prices form the basis for economic decisions?
market or market economy
What is the difference between a free market and communist economy?
In a capitalist economy, production is determined by free market forces such as supply and demand. In a communist economy, the government determines which goods and services get produced and how much is available at any given time. Hope it helps!
Prices in a market economy determine?
Prices in a market economy help determine the equilibrium. Consumers will not pay a price higher than its perceived value.
Is England an planned economy?
No, the UK is a Market economy. A market economy is one in which in which the prices of goods and services are determined by supply and demand.
What are the components of a free market economy?
A free market economy is a market based one. The prices of goods and services are determined independently in a free market.
What was the cause of the stock market crash?
Economy prices
