In a market economy, supply and demand are important because they are direct policy tools used by government agencies to regulate the economy. illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. can be used to predict the impact on the economy of various events and policies. All of the above are correct.
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Step 1: The first answer option is incorrect because government agencies cannot directly regulate the economy using supply and demand. Show more…
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