Question

The market mechanism benefits society by ensuring that ________.

Answer 1

The market mechanism benefits society by ensuring that: scarce resources are channeled into products most desired by society
Market mechanism determines which products stays or go by relying purely on the force of supply and demand. If the products are desired by the customers, the producer will always keep up with the demand in order to rake in the potential profit.

Answer 2

The market mechanism benefits the community where the public can know the price of the product by the demand and supply so that the community can determine what products will be purchased in which the market mechanism will make the demand and supply prices balanced.

Further Explanation

The market mechanism is the tendency in a free market for a price to change until the market becomes balanced (the amount offered is the same as the amount requested).

1. Request

Demand is the desire of consumers to buy an item at various price levels over a certain period, which is accompanied by a willingness and ability to buy the item.

The law of demand reads: "The higher the price of an item, the less the number of goods requested or sold and vice versa".

2. Offer

Offer is the number of goods that producers want to offer (sell) at various price levels during a certain period.

The law of the offer reads: "if the price goes up, then the amount offered also goes up and vice versa".

Strengths and weaknesses of the market mechanism

1. Strengths

• The Market Can Give More Correct Information.
• Developing Business Activities.
• Acquire Modern Expertise.
• Production Efficiently and efficiently.
• The market provides high freedom.

2. Weaknesses

• Unlimited freedom oppresses certain groups.
• Economic Activity Is Very Unstable.
• Market Systems Can Cause Monopoly.
• Market mechanisms cannot provide certain types of goods efficiently.
• consumer and producer activities might cause adverse "externalities".

Learn more

definition of The market mechanism brainly.com/question/4608480

Strengths and weaknesses of the market mechanism brainly.com/question/4608480

Details

Grade: High School

Subject: Business

keywords: The market mechanism