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Why does relative scarcity determine the level of prices in a free market system?
because scarcity means they don't have enough of something
In a market economy prices provide information regarding?
Scarcity.
Are taxes that distorts relative prices neutral?
Taxes which distort relative prices are not neutral.
How does scarcity relate to this good or service?
Scarcity of goods and sevices will drive the related prices up and result in increased demand.
How does scarcity affect the prices of goods and services in a market?
Ah, the concept of scarcity is like a gentle breeze moving through the market. When there's not enough of something, like a beautiful sunset painting, it becomes more valuable. This scarcity can cause prices to rise as people compete for the limited supply, creating a delicate dance of supply and demand in the market.
Why does relative scarcity determine the level of prices in a free market system?
because scarcity means they don't have enough of something
In a market economy prices provide information regarding?
Scarcity.
What method of dealing with scarcity is not based on prices?
Lottery.
Are taxes that distorts relative prices neutral?
Taxes which distort relative prices are not neutral.
How does scarcity relate to this good or service?
Scarcity of goods and sevices will drive the related prices up and result in increased demand.
How does scarcity affect the prices of goods and services in a market?
Ah, the concept of scarcity is like a gentle breeze moving through the market. When there's not enough of something, like a beautiful sunset painting, it becomes more valuable. This scarcity can cause prices to rise as people compete for the limited supply, creating a delicate dance of supply and demand in the market.
Inflation distorts relative prices. What does this mean and why does it impose cost to consumers?
Inflation distorts relative prices. What does this mean and why does it impose a cost on society?
What is the name of the fundamental law of capitalism based on the theory that abundance creates cheaper prices and scarcity leads to expensive prices?
Law of supply and demand.
How does scarcity affect producers?
Scarcity of availability causes producers to either charge higher prices or to produce more goods and services (like energy production, cars, paper, etc.)
What sort of economic incongruties appeared to be established as farm prices were raised by government subsidized scarcity?
Income
Why do market prices go up?
Prices can rise for various reasons. However, they usually go up when demand increases, or if there is a condition that causes a scarcity of resources.
What is the role of prices in the free market?
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.
