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nadezda [96]
3 years ago
7

What are the functions of prices in a market economy

History
1 answer:
baherus [9]3 years ago
5 0
<span>In a free market economy the price of different products gives information about the demand and supply of the products. The price of products increases when the demand rises as there are more buyers willing to pay a larger amount for the same product. Price also goes up when the number of producers supply a smaller amount of the product as they are in a position to demand a larger amount for the same product.

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