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The essential feature of the market mechanism is the interaction of supply and demand, which determines the prices of goods and services. When demand for a product increases, prices tend to rise, incentivizing producers to supply more. Conversely, if demand decreases, prices may fall, leading to a reduction in supply. This dynamic helps allocate resources efficiently in an economy by responding to consumer preferences and production costs.
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What is the basic coordinating mechanism is a free market system?
the basic coordinating mechanism in a free market system is Price.
In a free competitive market what is the rationing mechanism?
Price is the rationing mechanism. Whoever can afford it, will by it.
How does the market allocate resources?
Through price mechanism...
What is a basic feature of the free-market system?
A basic feature of the free market system is that consumers make their own economic choices
Is the price mechanism an effective way to the solve the basic economic problem?
The price mechanism is a feature of the free market and operates through demand and supply and the self interest of individuals, government action is minimised. This has the benefits of incentive, efficiency, innovation, choice and consumer sovereignty. Against this there may be market failure including inequality, lack of public and merit goods, externalities and instability. Depending upon the degree of failure the mechanism may be more or less effective. The price mechanism does not solve the basic economic problem but is thought to be effective when operating efficiently.
What is technology in market mechanism?
What is technology in market mechanism?
Who has a feature of price mechanism?
teachers
What is the basic coordinating mechanism is a free market system?
the basic coordinating mechanism in a free market system is Price.
In a free competitive market what is the rationing mechanism?
Price is the rationing mechanism. Whoever can afford it, will by it.
The regulatory mechanism of the market system is?
competition
What is an essential feature of capitalism?
Inequity
A capitalist system is guided in its working by the?
market mechanism
How does the market allocate resources?
Through price mechanism...
What is a basic feature of the free-market system?
A basic feature of the free market system is that consumers make their own economic choices
How do you use mechanism in sentence?
the mechanism failed when the earthquake struck. or the mechanism is essential because it provides humans with clean and breathable air in a city full of smog
Is the price mechanism an effective way to the solve the basic economic problem?
The price mechanism is a feature of the free market and operates through demand and supply and the self interest of individuals, government action is minimised. This has the benefits of incentive, efficiency, innovation, choice and consumer sovereignty. Against this there may be market failure including inequality, lack of public and merit goods, externalities and instability. Depending upon the degree of failure the mechanism may be more or less effective. The price mechanism does not solve the basic economic problem but is thought to be effective when operating efficiently.
The negotiation of prices for goods and services depending on supply and demand is referred to as which of these?
Price mechanism (A+)
