Characteristic Of Market Economic

2# Economics 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 divine service - Subjects
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Nature Of The Market -
Describe the characteristics of a securities industry economy
Distinguish surrounded by product and factor commercializeplaces
Distinguish between competitive and non-competitive markets

Market Economy Where decisions are made in the factor and product
Markets between buyers (consumers) and sellers (producers)

Main characteristics:
(i) price mechanism self-loading and free adjustment
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 attitude
(iii) how to touch there complimentss.
(iv) Competition allows the price mechanism to operate efficiently


1 Sends market signals
- rising prices indicate shortages i.e. Demand stronger then supply
- fall prices indicate gluts i.e. supply stronger than demand.




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- 2 allocates resources efficiently
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- 3 rations scares resources
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- 4 acts as a clearing agent removes gluts and shortage restones market equilibrium (demand=




Demand amount of ge5 consumers are unforced to get at various prices time.

Law Of Demand Consumers more than willing to purchase greater quantities at degrade prices and less at higher prices. (want satisfaction)

Establishes an inverse relationship between price and quantity demanded.

Demand curve is downwards sloping to the right.


FQ: Why is more purchased at lower prices
A: more buyers outer the market at lower prices real 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



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