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The market mechanism:_______

a) Is an inefficient means of communicating consumer wants to producers.
b) Relies on government control and planning.
c) Eliminates the market failures caused by government.
d) Relies on prices and sales to communicate consumer wants to producers.

User Avelyne
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Answer:

d. Relies on prices and sales to communicate consumer wants to producers.

Step-by-step explanation:

Market mechanism also known as free market economy is a market where there are no government control over what the buyers buy and what the sellers sells. Here, there are no regulations to prices of goods and services .

In a market mechanism, decisions on forces of demand and supply are made solely by individuals. Market mechanism are associated with capitalist economies unlike Government controlled markets which are associated with Socialist economies.

Examples of market mechanism are industries, companies, businesses which produces and sells goods and services at the price commensurate with what consumers want to pay . Also, companies are willing and able to pay highest wages and salaries in line with workers demand.

User James Berkenbile
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