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Because prices serve as incentives in market economy What will be large increase in price of a good?
Wiki User
∙ 8y ago
People would consume less of the good and look for substitutes. (study islands)
Nina Riesdorph
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How does the market economy work?
An increase in trade and aided the growth of market economy
How does market economy work?
An increase in trade and aided the growth of market economy
What is the connection between incentives and consumer sovereignty in a free market economy?
Consumers are free to spend their income in such a way as to best satisfy their wants, which can be motivated by incentives.
A sentence with market economy?
Because of a market economy the price of riddlers gum has to be 35 cents. :)
Why is the consumer king in a market economy?
because the market economy is driven by demand and consumer is the one who demands
How does the market economy work?
An increase in trade and aided the growth of market economy
How does market economy work?
An increase in trade and aided the growth of market economy
What is the connection between incentives and consumer sovereignty in a free market economy?
Consumers are free to spend their income in such a way as to best satisfy their wants, which can be motivated by incentives.
A sentence with market economy?
Because of a market economy the price of riddlers gum has to be 35 cents. :)
Why is the consumer king in a market economy?
because the market economy is driven by demand and consumer is the one who demands
What is the nature of Nigerias economy?
The nature of the economy in Nigeria is mixed and also defined as an emerging market. Nigeria's economy is experiencing increasing growth with a 7 percent increase in 2013.
Why can the law of demand apply only in a free market economy?
demand refers to need for a resource. the law of demand states that an increase in demand will result in an increase in price, ceteris paribus. in a free market economy, sellers are free to increase prices when demand increases. in a closed economy prices are controlled by government. an increase or decrease in demand doesn't affect prices.
How might a nation move from a command economy to a market economy?
Nations are moving towards a market economy and away from the command economy because the market economy is more efficient and makes more people happy. A market economy has more protections in place for consumers.
What type of economy does myanmar have?
Myanmar(Burma) has a mixed economy.It would be market economy, but because no country has pure market economy due to government regulations, Myanmar has a mixed economy.
Why does poverty exist in a free market economy?
Poverty exists in a free market economy because people can choose how to make their money.
In a market economy a high price is a signal for?
rising profit, because in case of scarcity, the price signal induces producers to increase their capacity because rising price means rising profitability. :)
What is Bolivia economy?
Market Economy.
