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Prices in a free market are a measure of scarcity and desirability. Something that is scarce and desirable - gold, for example - will have a high price. Something that is common but still desirable - bread or beef - will have a lower price. As the scarcity or desirability of an item increases, the price will increase.
What else can I help you with?
Will consumerism drive down prices as the free market system indicates?
No The market is not free
What are the components of a free market economy?
A free market economy is a market based one. The prices of goods and services are determined independently in a free market.
What factors are responsible for setting prices in a free market system?
"Supply is relative to demand" explains the factors responsible for setting prices in a free market system.
What is the main form of communication in a free market system?
prices
What role does self-interest playin a free market economy?
It is the motivating force in the free market
What overall vital role do price play in the free market?
Overall,the vital role prices play in the free market enables individuals and businesses to create, produce, transform, develop, innovate and compete in the marketplace.
Will consumerism drive down prices as the free market system indicates?
No The market is not free
What are the components of a free market economy?
A free market economy is a market based one. The prices of goods and services are determined independently in a free market.
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.
What factors are responsible for setting prices in a free market system?
"Supply is relative to demand" explains the factors responsible for setting prices in a free market system.
What explains the factor responsible for setting prices in a free market system?
"Supply is relative to demand" explains the factors responsible for setting prices in a free market system.
What role does self-interest playin a free market economy?
It is the motivating force in the free market
What is the main form of communication in a free market system?
prices
What is the role of households in a free market economy?
households are important role in free market economy. they only called as customers and consumers in the free market economy so they involved goods purchase and selling activities..
What happens to prices in a free competitive market?
In a free competitive market, prices are determined by supply and demand. When demand for a product or service is high and supply is limited, prices tend to increase. Conversely, when demand is low and supply is abundant, prices tend to decrease. This dynamic process of supply and demand helps to ensure that prices in a free competitive market are set at a level that reflects the true value of goods and services.
What is the role of prices in allocating resources in a market economy?
This is from P.47 . right ?
How are good and resources distributed in a free market economy?
Through prices
