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To be succinct, the market mechanism allocates an efficient price vector solution to the distribution of a commodity conditional of the assumptions that that consumers and firms exist and that they have the freedom to buy as they please.

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Related Questions

What groups of players make all of the economic decision in a free-market system?

consumers and producers


Who makes economic decisions in a free-market system?

Consumers and Producers.


How do consumers make their desires known to business?

consumers can make their desires known through their economic dealings with producers


What is the role of consumers and producers in a free-market system?

They make the economic decisions.


An economic system where decisions are made by producers and consumers are what?

Free-Market system


Who makes the economic decisions in a market economy?

The Market or if you want a "who", consumers and producers.


What is the role of consumers and producers in free market?

C. They make the economic decisions


What is the role of consumers and producers in the market system?

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What way do producer and cunsumer depend on one another?

Producers and consumers are interdependent in the economy; producers create goods and services that meet the needs and desires of consumers, while consumers provide the demand that incentivizes producers to supply those goods and services. This relationship drives economic activity, as producers rely on consumers for revenue to sustain and grow their businesses. Conversely, consumers depend on producers to provide the variety and quality of products they seek. Together, they create a cycle that fuels economic growth and innovation.


What is the role of consumers and producers in free-market system?

C. They make the economic decisions


What is the role of consumers and producers in a free-market system.?

C. They make the economic decisions


What is a role of consumers and producers in a free-market system?

C. They make the economic decisions