ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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neutral
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positive
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negative
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unfair
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Detailed explanation-1: -Neutrality in a competitive market economy, prices are neutral because they favor neither the producer nor the consumer. Since prices are the result of competition between buyers and sellers, they represent compromises that both sides can live with.
Detailed explanation-2: -A competitive market is defined as the market that has numerous producers. These producers compete with one another in scope to provide quality goods and services. They research about the needs and hopes of consumers, and try to be better and more worthy than their other competitors.
Detailed explanation-3: -Why do purely competitive markets tend to benefit consumers over producers? Consumers control price through demand.
Detailed explanation-4: -Market prices are dependent upon the interaction of demand and supply. An equilibrium price is a balance of demand and supply factors. There is a tendency for prices to return to this equilibrium unless some characteristics of demand or supply change.
Detailed explanation-5: -Focus on profit. Diminishing supply. Consumer rivalry. Exclusion or inclusion. Healthy margins and the ability to charge. Informative for the customer. Fewer time delays. Reduced external influences. More items •07-Jul-2021