The functions of price mechanism in a free market economy, Macroeconomics

Price Mechanism

Price mechanism is the point, which equilibrates supply and demand within a market. It is a mechanism of pricing. The price mechanism is one, which permits the prices of goods and services to be determined by the interplay between supply and demand. There is no centralized price fixing.

The price mechanism is the concept that the free market, when left to its own devices, will invent fair prices of the goods or services on its own by the natural laws of supply and demand.

 

Posted Date: 4/1/2013 3:59:06 AM | Location : United States







Related Discussions:- The functions of price mechanism in a free market economy, Assignment Help, Ask Question on The functions of price mechanism in a free market economy, Get Answer, Expert's Help, The functions of price mechanism in a free market economy Discussions

Write discussion on The functions of price mechanism in a free market economy
Your posts are moderated
Related Questions
The price will change in the market, only due to the change in demand for the product. True or false

What is Inherent Limitation?

Please explain each of the following terms and explain how each is used in the standard model. 1. Iso value line's 2. Production possibilities frontier 3. Indifference curve. You w



Roles of government in controlling market forces under neoclassical view

What are the important aspects in tracking the macro-economy? Important aspects in tracking the macro-economy: a. How economists utilizes aggregate measures to track the pre

In a sample of 80 people who have had strokes, the average cholesterol level was 250 with a standard deviation of 70. In order to test the hypothesis (at the 5% level of significan

what is Y = C(Y,T) + G + I(r)

HOW INCOME TERMS OF TRADE DIFFER WITH COMMODITY TERMS OF TRADE"