The use of market prices and sales to signal desired outputs (or resource allocation) is referred to as O market power O laissez faire O the market mechanism O market failure
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Step 1: The use of market prices and sales to signal desired outputs (or resource allocation) is a fundamental concept in economics. Show more…
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In a market economy, supply determines demand and demand, in turn, determines prices. Demand determines supply and supply, in turn, determines prices. The allocation of scarce resources determines prices and prices, in turn, determine supply and demand. Supply and demand determine prices and prices, in turn, allocate the economy's scarce resources.
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