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In a market economy, supply and demand are crucial as they determine the prices of goods and services. When demand for a product increases and supply remains constant, prices tend to rise, signaling producers to increase output. Conversely, if supply exceeds demand, prices typically fall, prompting producers to adjust their production levels. This dynamic interplay helps allocate resources efficiently and meets consumer needs.
What else can I help you with?
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 basis of a market economy?
Supply And Demand is the basis of most activity in a market economy.
Who determines prices in a market economy?
in a market economy.. the prices are decided by demand and supply....or compention
A market economy is based on?
Supply and demand
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.
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 basis of a market economy?
Supply And Demand is the basis of most activity in a market economy.
Who determines prices in a market economy?
in a market economy.. the prices are decided by demand and supply....or compention
A market economy is based on?
Supply and demand
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 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.
In a market economy a low price is a signal for?
low demand
In a market economy what are prices are established by?
the interaction of supply and demand.
What type of economy is this When trying to decide what to produce businesses will look at the demand for their goods?
This cannot be answered. This does not make any sense.
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.
How does a command economy respond to consumer demand?
Command economy, due to the imperfect market it always creats, it shall always supply economic goods(scarcity) in the market to alow high demand, hence monopoly of the market.
