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Write a short note on market economy |
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Answer» What is the definition of MARKET economy? Market economies are open economiesthat enable the free flow of goods and services between PRODUCERS and consumers based on DEMAND and supply. The main characteristic of market economies is that economic decisions are regulated by the market itself, which always finds a way to rebalance.For example, as the prices in one industry MAY increase due to higher consumer demand, the labor required to produce higher output increases proportionally. In that way, producers deliver the output that MEETS consumer demand, whereas the competitive forces keep the prices at a moderate level so that consumption increases in the long-term....... follow me........... ☺....... |
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