The market system provides such a variety of desired goods

Question

Explain the statements: The market system provides such a variety of desired goods and services precisely.

Answer 1

The market system provides such a variety of desired goods and services precisely because no single individual or small groups is deciding what the economy will produce. Each individual consumer will choose a variety of goods and services that in combination will maximize his/her satisfaction (utility). To maximize profits, producers must respond to the desires of the individual consumer.