ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Market
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Command
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Either A or B
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None of the above
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Detailed explanation-1: -Market equilibrium, or balance between supply and demand. Supply and demand are equated in a free market through the price mechanism. If buyers wish to purchase more of a good than is available at the prevailing price, they will tend to bid the price up.
Detailed explanation-2: -A market economy is a type of economic system where supply and demand regulate the economy, rather than government intervention. A true free market economy is an economy in which all resources are owned by individuals.
Detailed explanation-3: -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.