Question

In a market economy resources tend to be allocated optimally. Discuss how the interaction of consumers and producers makes this happen

Answer 1

Answer:

In a market economy resources tend to be allocated optimally is discussed below in detail.

Explanation:

In a market economy, resource allocation is circumscribed by the supply and request forces. In other speeches, the allocation of resources is determined using the payment mechanism. The resource allocation in a projected economy, on the other hand, is circumscribed by management or a central administration.