Role of price in market economies
What is the role of price in market economies?
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Prices play a very important role in market economies since they bring markets into equilibrium. When the price is distinct from its equilibrium level, the quantity supplied and quantity demanded are not equivalent. The resultant surplus or scarcity leads suppliers to adjust the price till equilibrium is restored. The prices therefore serve as signals which guide economic decisions and assign scarce resources.
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Question: A county with a fixed or managed exchange rate would consider i.___________________ its currency if the country is worried about domestic inflation. ii. Briefly Explain? Discover Q & A Leading Solution Library Avail More Than 1415637 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1941227 Asked 3,689 Active Tutors 1415637 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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