Question

Mention any one advantage and disadvantage of unregulated and regulated market.

Answer 1

Unregulated:

Disadvantage: Poor Quality. Since profit maximization is the biggest motivation for firms, they may try to reduce their costs unethically
Advantage: In its purest form, a free market economy is when the allocation of resources is determined by supply and demand, without any government intervention. Supporters of a free market economy claim that the system has the following advantages: It contributes to political and civil freedom. ... It ensures competitive markets.


Regulated:

Advantage: Suitable arrangements for the settlement of disputes is provided. Reliable and up to date market news are made available to the farmers. Suitable quality standards and standard terms for buying and selling are conveniently enforced
Disadvantage: Lack of Specialization. One of the main disadvantages of having a single body regulate financialmarkets is that it makes it more difficult for this body to specialize in particular regulatory aspects in the way that multiple entities are better able to do

Answer 2

Regulated Market Pros:

- It looks out for the safety of consumers.

-It protects the safety and health of the general public as well as the environment.

-It looks after the stability of the economy.

Unregulated Markets(Free Markets)

-It contributes to political and civil freedom, in theory, since everybody has the right to choose what to produce or consumer.

-It contributes to economic growth and transparency.

-It ensures competitive markets.

-Consumers' voices are heard in that their decisions determine what products or services are in demand.

-Supply and demand create competition, which helps ensure that the best goods or services are provided to consumers at a lower price.

Explanation:A free market economy is essentially when the allocation of resources is determined by supply and demand, without any government intervention., and a regulated market is vice versa.