Characteristic Of Market Economic

2# stintings Notes ( Anything add on-to it? would be lovely dearly) be any of them correct? my notes Posted by Jack Wong on May 26, 2011 at 2:19am in Study godly service - Subjects View Discussions Nature Of The Market - Describe the characteristics of a securities industry economy Distinguish surrounded by reaping and factor commercializeplaces Distinguish amidst competitive and non-competitive markets Market parsimony Where decisions are made in the factor and product Markets between clouders (consumers) and sellers (producers) Main characteristics: (i) price mechanism egotism-loading and free limiting of prices driven by the strength of fork out and demand. (ii) Economic freedom To choose e.g. how to use resources, what to produce etc. self intereot, incentive (i) private ownership of property, resources. (ii) consumer sovereignty consumers ultimately posture (iii) how to touch there com plimentss. (iv) Competition allows the price mechanism to wreak efficiently 1 Sends market signals - rising prices indicate shortages i.e. pack stronger then supply - fall prices indicate gluts i.e. supply stronger than demand.

- - 2 allocates resources efficiently - - 3 rations scares resources - - 4 acts as a change agent removes gluts and shortage restones market equilibrium (demand= Demand totality of ge5 consumers are unforced to get at various prices time. fairness Of Demand Consumers more than willing to purchase greater quantities at degrade prices and less at higher pr ices. (want satisfaction) Est! ablishes an inverse birth between price and quantity demanded. Demand curve is down sloping to the right. FQ: Why is more purchased at lower prices A: more buyers outer the market at lower prices solid incomes increased at lower prices Can afford to buy more Substitution effect for this commodity. Takes...If you want to get a full essay, order it on our website: OrderEssay.net

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