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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.
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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.
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.
Which of these is most important in a free-market system?
The laws of supply and demand are the most important factors in a free-market system.
How are wages determined in a free market?
by the laws of supply and demand
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.
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.
How are wages determined in a free market?
by the laws of supply and demand
Which of these is most important in a free-market system?
The laws of supply and demand are the most important factors in a free-market system.
How are good resources distributed in a free market economy?
In a free market economy, goods and resources are distributed by property and supply/demand.
What are the three aspects in free market economy?
The three aspects in free market economy are capitalism is a free market system of trade, governed exclusively on the economic principle of supply and demand. You need all of these to have a free market economy.
What is the role of competition in a free market economy?
To change the supply and demand
Is characterized by the unregulated exchange of service and goods?
A free market is a market where prices are determined by supply and demand. Free markets contrast with controlled markets in which prices, supply or demand id directly controlled.
What is characterized by the unregulated exchange of services and goods.?
A free market is a market where prices are determined by supply and demand. Free markets contrast with controlled markets in which prices, supply or demand id directly controlled.
What is the main force behind the decisions made by producers in a free market scociety?
Demand demand demand
What factors are responisble for setting prices in a free-market eystem?
Supply relative to demand is primarily responsible for setting prices in a free market system.
