Answer:
An example of a behavior that is not exhibited in a market economy is;
c. The president of the European country of Semolina decrees that pasta must be consumed at all meals in an effort to help domestic pasta makers.
Explanation:
A market economy is a situation where the prices of goods and services in the market is controlled purely by the market forces of demand and supply. The prices are majorly set by competing private businesses without any form of government restrictions. Economists like Adam Smith postulated that when the market was controlled by forces like competition, supply and demand with limited government interference, it led to efficiencies as compared to if the government was involved.
There are different examples of behavior exhibited in a market economy, namely;
1. For their wedding, Alex and Erika choose Matte Photography instead of Pro Finish Photography, since Matte Photography is cheaper. In this case Alex and Erika made a decision to go for an option based on price. A characteristic of a market economy.
2. Despite the advice of its business partners, Puna discontinues its most popular lines of clothing, and chooses instead to produce retro jean jackets and purple sweatpants, thinking that jean jackets and sweatpants are bound to make a fashion comeback. This is an example of a market economy behavior since Puna makes the decision freely without any external restrictions.
3. Nettoyer decides to introduce a soap scent, Pomegranate, in response to Schoon's new soap scent, Blood Orange, and Sauber's award-winning scent, Tangerine. Nettoyer has the freedom to introduce a new product in the market in order to compete effectively,. This is a behavior characteristic of the market economy.
An example of a behavior that is not exhibited in a market economy is;
1. The president of the European country of Semolina decrees that pasta must be consumed at all meals in an effort to help domestic pasta makers. This is because the government through the president provides restrictions on the consumption of pasta.
