DEVELOPMENT OF A MARKET MECHANISM IN EXTRAORDINARY BUSINESS ACTIVITIES
Keywords:
The market mechanism heavily depends on the market forces of supply and demand in determining the prevailing prices of a commodity while on the other had the central allocation system determines the prices regardless of these market forces. Economists have come up with arguments in support and against these two players in the determination of market prices.Abstract
In any given market, the process of resource allocation is the responsibility either of the market forces or of government through its interventions in the price mechanism. Each of these two forces plays an important role in resource allocations if allowed at their most appropriate times otherwise they become a bothers in the price determination process.
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References
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