What are the advantages and disadvantages of customers when relying on market system?

Answer 1

since all the productive resources are owned by the private sector i.e individuals and private firms,basic decisions about the allocation of recources ,techniques of production and distribution of rewards will be taken by the private sector.

private sector seeks maximum profit and for this purpose it may, sometimes, exploit the market to their advantage and to the disadvantage of the consumers.the main problems which are likely to arise in govt. absence are:

1) high price for items.

2)shortage of items.

3)fluctuations in price of commodities.

private sector may create artificial shortage through holding stocks and charge the prices which suit them.

4) since its is run purely for profit motive ,little consideration is given to the provision of public goods.

advatages:

1)economic freedon is given to people.this includes property rights,choice of profession,and freedom of use of one's own property.

2)every one works to get maximun economic benefit so it is productive efficient.