ENTREPRENEURSHIP

Detailed explanation-1: -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. It also acts as signalling mechanism between buyers and sellers; telling them how much and what to produce.

Detailed explanation-2: -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-3: -Price mechanism-sometimes called the market mechanism-is based on the concept of equilibrium, which states that when demand and supply are equal, a market price is established. A state of disequilibrium is achieved when demand and supply are out of balance.

Detailed explanation-4: -Definition: Price mechanism refers to the system where the forces of demand and supply determine the prices of commodities and the changes therein. It is the buyers and sellers who actually determine the price of a commodity.