BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In a free market economy, the products are produced according to the satisfaction of consumers. Therefore, resources for production are allocated after doing a thorough analysis on consumer satisfaction which is regarded as the top most priority without comprising the goal of profit maximization.

Detailed explanation-2: -Consumers and businesses drive supply and demand: Since a market economy allows the free interplay of supply and demand, it ensures that the most desired goods and services are produced. Consumers are willing to pay the highest price for the things they want the most.

Detailed explanation-3: -In a Free Market Economy, the production of goods and services is determined by consumer demand rather than controlled by a central government.

Detailed explanation-4: -In a market, resources are allocated based on the demand/supply in which prices plays an signalling function as it allocates resources to the production of different types of goods.

Detailed explanation-5: -In a free market economy, prices of commodities in the market are affected by the forces of demand and supply. This generates open competition in the market which leads to optimum allocation and utilization of resources in the economy without any planning or intervention of any authority.