ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Market economies work using the forces of supply and demand to determine the appropriate prices and quantities for most goods and services in the economy.

Detailed explanation-2: -The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and demand. As the price increases, supply rises while demand declines. Conversely, as the price drops supply constricts while demand grows.

Detailed explanation-3: -A market economy is a type of economic system where supply and demand (1) regulate the economy, rather than government intervention.

Detailed explanation-4: -A market economy is one in which the allocation of resources and the prices of goods and services are determined by market forces, primarily supply and demand.

Detailed explanation-5: -A capitalist economy is a type of free market economy; the profit motive drives all commerce and forces businesses to operate as efficiently as possible to avoid losing market share to competitors.