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Explain Why the law of demand can apply only in a free market economy?
Wiki User
∙ 13y ago
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.
Wiki User
∙ 13y ago
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Which terms would not apply to a free market economy?
supply and demand
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.
Explain why the law of demand can apply only in a free market?
Because the free market is the entity that in itself dictates the law of supply and demand. If the purchasing public has a high demand for a product, then more of that product is produced. Conversely, if there is only a low demand for a product, less of that product is produced.
Do the laws of supply and demand apply to the gasoline market?
yes.
When a particular market the law of demand and the law of supply both apply the imposition of a binding price ceiling in that market causes?
When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be greater than quantity supplied.less than quantity supplied.equal to quantity supplied.Any of the above is possible.
Which terms would not apply to a free market economy?
supply and demand
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.
Explain why the law of demand can apply only in a free market?
Because the free market is the entity that in itself dictates the law of supply and demand. If the purchasing public has a high demand for a product, then more of that product is produced. Conversely, if there is only a low demand for a product, less of that product is produced.
Do the laws of supply and demand apply to the gasoline market?
yes.
When a particular market the law of demand and the law of supply both apply the imposition of a binding price ceiling in that market causes?
When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be greater than quantity supplied.less than quantity supplied.equal to quantity supplied.Any of the above is possible.
What is value change management?
When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be __________.
What are synonyms of apply?
demand, petition, stamp, utilize
How does the law of demand apply to buying goods at a retail store and at a wholesale store?
Discuss the law of demand and apply to buying goods at a retail store and at a wholesale store.
What is the difference between definition and explain?
a definition is brieflysummarizingsomething, so say define competitor you would say abusiness rival in the same market for products or services offered by an organisation but explaining you have to put ofr detail, so explain how hitler came to power you would have to go on further detail and apply yourknowledge. Basically definition is brief and short and explain you apply your knowledge and give detail
How will you apply operational economy in the conduct of paraffin casting?
Hdjdjdjudidjdjdj
Can you apply online to work at the city market?
yes i can
As the price of a commodity falls quantity demanded of that commodity increases. Explain the extent to which this statement can apply?
it depends entirely upon the elasticity of the demand. medication which could stop otherwise terminal cancer would have a inelastic demand curve, you will pay whatever it costs up to your extent to pay, or your insurance plans ability to pay. The quantity that you would buy does not vary by price. But products which have readily available alternatives would have very elastic demand curves, such as a particular brand of corn. Should something like peruvian blue corn become too expensive, other types of corn would take it's market share. Should it become much cheaper than most corns, it would gain market share.
