https://padlet.com/rachna_shukla15/puxbwt4f9pdz Made with panache en-us 2018-09-03 19:38:21 UTC 2023-09-05 13:39:16 UTC hello@padlet.com rachna_shukla15 https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2683645254 Explain the different ways in which resources are allocated in a market economy.]]> 2023-09-04 17:34:03 UTC https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2683645254 https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684627885 via the invisible hand. the price mechanism helps determine what and how recourses are allocated as demand for a good increases, so does the price. then, an increase in demand requires more labour, thus increasing the demand of labour and increasing wages for labourers]]> 2023-09-05 09:50:19 UTC https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684627885 https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684628117 Resources are allocated by the price mechanism, where when demand increases, prices increase, when demand falls, there is excess supply, due to this the price falls, which then again increases demand, this is because cheaper goods are attractive, this cycle is ever continuous 

Resources are allocated to whoever can afford the resources at its price]]> 2023-09-05 09:50:34 UTC https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684628117 https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684628544 Through prices that are determined in markets, consumers will pay higher prices for goods and services that they value more highly ]]> 2023-09-05 09:51:05 UTC https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684628544 https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684628727 in market economies the resources are allocated by their most productive use, which ever use will generate the most profit for the firm. These are the products or service that is in highest demand from the consumer. The demand of a consumer is an indicator to which product/ industry to allocate resources towards. Specified by the price mechanism, as demand increase for a product as does the prices this causes the demand to then decrease and price increase repeating the cycle. This is called the invisible hand of the market system.

The decision of whom to produce for is determined by who has the purchasing power / ability to pay for the goods. The decision of how to produce is determined by whichever way is most productively efficient. 


]]> 2023-09-05 09:51:16 UTC https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684628727 https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684631887 In market economy, resources are allocated by corporations in order to achieve maximum profits, by allocating resources into fields with the highest demand, and to lower production cost.]]> 2023-09-05 09:54:37 UTC https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684631887 https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684636050 Market economies are systems in which there is limited interference by governmental power which indicates how there is no single body deciding on resource allocation and instead the price mechanism, the invisible hand, allows resources to be distributed based on the supply and demand  to achieve maximum profits and therefore profits then motivate productive efficiency as well as for whom to produce for is determined by those with spending power so resources are allocated based on an analysis on what, how and who to produce for and what would result in high quality goods at a low cost to maximise customer welfare.]]> 2023-09-05 09:58:38 UTC https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684636050 https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684636476 In a market economy goods are priced by corporations, via the invisible hand, in a market economy it if often these goods are priced as low as possible  at highest quality possible, this is because a market economy has low entry barriers, this results in firms becoming competitive to to acquire sales from consumers, and thus offering them the best deals( high quality low price) this is consumer sovereignty,]]> 2023-09-05 09:59:12 UTC https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684636476 https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684637045 Resources can be allocated by the concept of competition. this can be showb since competition in businesses encourages quality and innovation as well as increased productivity. Companies that push to offer better products or services at competitive prices to attract consumers. Competition also prevents monopoly due to monopolies preventing the promotion of lower prices, unlike a situation in a market economy. This therefore results in resources being allocatdd.]]> 2023-09-05 09:59:50 UTC https://padlet.com/rachna_shukla15/puxbwt4f9pdz/wish/2684637045