Podcast
Questions and Answers
Which two forces make market economies work?
Which two forces make market economies work?
- Competition and innovation
- Demand and quantity
- Supply and demand
- Price and quantity (correct)
What are the main drivers of market economies?
What are the main drivers of market economies?
- Technological advancements
- Government regulations
- Consumer preferences
- Price and quantity (correct)
What are the two fundamental factors that determine market outcomes?
What are the two fundamental factors that determine market outcomes?
- Market size and competition
- Consumer income and preferences
- Price and quantity (correct)
- Production costs and profitability
Who determines how much of a good will be sold and the price at which it is sold in a free market?
Who determines how much of a good will be sold and the price at which it is sold in a free market?
What is the role of suppliers in a free market?
What is the role of suppliers in a free market?
In a free market, who has the power to determine the quantity of a good to be sold?
In a free market, who has the power to determine the quantity of a good to be sold?
Flashcards
Price and Quantity
Price and Quantity
The primary forces driving market economies.
Role of suppliers
Role of suppliers
In a free market, they are responsible for setting prices and determining the amount of goods available.
Who determines quantity?
Who determines quantity?
The entity in a free market that decides the quantity of goods available for sale.
Study Notes
Market Economies
- Two forces that make market economies work: Supply and Demand
- Main drivers of market economies: Supply and Demand
- Two fundamental factors that determine market outcomes: Supply and Demand
Free Market Mechanism
- In a free market, Suppliers and Demanders determine the quantity of a good to be sold and the price at which it is sold
- Suppliers have the power to determine the quantity of a good to be sold in a free market
- Demanders (consumers) have the power to determine the price at which a good is sold in a free market
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