0
The brilliant thing is that no-one has that job. The buyers determine the demand, without colluding, and the sellers determine the supply. If they get it right, demand equals supply.
If demand exceeds supply, people have to queue up. People at the back might shout out that they will play a higher price, so they jump the queue and that drives the price goes up.
If supply exceeds demand, some sellers might shout out that they will sell more cheaply than the rest, and that drives the price down.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What determines the price of goods in a free enterprise system?
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.
How are wages determined in a free market?
by the laws of supply and demand
What is the role of competition in a free market economy?
To change the supply and demand
Which terms would not apply to a free market economy?
supply and demand
What determines the price of goods in a free enterprise system?
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.
How are wages determined in a free market?
by the laws of supply and demand
How can price be determined in a free market economy?
In a perfect free-market economy, price is determined by supply and demand.
What is the role of competition in a free market economy?
To change the supply and demand
Which terms would not apply to a free market economy?
supply and demand
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.
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.
The natural forces of supply and demand?
The biggest force of supply and demand relates to price if there is a low supply and and a high demand , the supply goes to those that are willing to pay the most.
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 ordinary shares valuated?
In a free market they are valued by the law of supply and demand.
In a free market economy decisions are made according to what laws?
supply and demand
